Auto Policy Showdown: PMO Weighs in on CAFE Norms Tussle Between Maruti and EV Makers
A growing tussle has emerged between two powerful auto lobbies over the government’s proposed tightening of Corporate Average Fuel Efficiency (CAFE) norms. On one side, Maruti Suzuki—backed by manufacturers focused on small petrol cars—has urged the government to reconsider the mov
A growing tussle has emerged between two powerful auto lobbies over the government’s proposed tightening of Corporate Average Fuel Efficiency (CAFE) norms. On one side, Maruti Suzuki—backed by manufacturers focused on small petrol cars—has urged the government to reconsider the move, arguing that stringent norms will hurt the affordability of entry-level vehicles like the Alto K10, WagonR, and Celerio. These models are crucial to India’s mass-market segment.
On the other side, the EV lobby led by JSW MG and Tata Motors is pushing for stricter norms, claiming they will accelerate the transition to electric mobility. However, EV makers also fear the revised standards could place entry-level EVs—priced around ₹15 lakh—on the same footing as ₹8–10 lakh petrol cars, blunting their price advantage. The matter has reportedly reached the Prime Minister’s Office (PMO), which is reviewing both viewpoints ahead of a final policy decision.
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