Tata Motors MD Shailesh Chandra Opposes Relaxation of CAFE III Norms for Small Cars

Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles Ltd, stated that no leniency should be granted to small cars under the CAFE-III norms based on weight and affordability. He argued that such concessions would compromise safety features and detract from sustainable mobility efforts. Chandra emphasised that Tata Motors, a major producer of small cars in India, has no issues meeting these norms despite their high sales volume.

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Chandra responded to calls for relaxed norms for small cars, highlighting that the definition of small cars under GST 2.0 is based on length and engine capacity. He sees no justification for special concessions for any car category, whether small or large. Maruti Suzuki India has advocated for such concessions, with Chairman RC Bhargava suggesting that CAFE norms should target larger cars to enhance fuel efficiency and reduce emissions.

Industry Division on Small Car Concessions

The auto industry is divided on this issue. While companies like Maruti Suzuki, Toyota Kirloskar, and Honda Cars India support benefits for small cars, others including Tata Motors, Mahindra, Hyundai, and Kia oppose it. Chandra clarified his stance as Tata Motors' MD, opposing any arbitrary criteria based on weight for defining small cars. He stressed that such criteria would conflict with safety imperatives.

Chandra noted that consumer preferences are shifting towards safer vehicles with more features. Industry estimates indicate no car under 909 kg meets Bharat NCAP safety ratings. Encouraging lighter vehicles could undermine safety advancements made by the industry. He also pointed out that regulations should align with evolving consumer trends.

Focus on Sustainable Technologies

Chandra highlighted the market trend towards compact SUVs in the sub-four meter space, reflecting changing customer aspirations. He disagreed with the notion that lightweight cars are inherently affordable, noting that some vehicles near the proposed 909 kg weight criteria retail around Rs 10 lakh. Minor weight reductions could bring them within this criteria without making them cheaper.

He warned against diluting emission norms based on weight criteria as it compromises vehicle safety and distracts from sustainable mobility efforts. Chandra believes discussions should focus on promoting sustainable technologies like EVs and flex fuel vehicles rather than small car concessions.

CAFE Norms and Future Regulations

The CAFE norms, initiated in 2017, aim to limit average fuel consumption and CO2 emissions across a manufacturer's fleet to improve fuel efficiency and reduce emissions. CAFE II began in 2022, with CAFE III expected to start in April 2027. New criteria are being discussed among stakeholders following draft regulations released by the Bureau of Energy Efficiency in September.

Chandra concluded by emphasising the need to focus on sustainable technology advancements rather than concessions for small cars. This approach aligns with evolving consumer preferences for safer and feature-rich vehicles at competitive prices.

With inputs from PTI