Quick Takeaways
- India’s largest automaker warns that selective fuel-efficiency exemptions could dilute EV adoption momentum built over years of policy consistency.
- The company flags long-term risks to electrification investments, safety standards, and competitive balance in the passenger car market.
On December 26, 2025, at the start of, Tata Motors opposes CAFE exemption for small petrol cars, warning that relaxing fuel efficiency norms for lightweight vehicles could slow India’s transition toward sustainable mobility technologies. The company stated that exemptions based on vehicle size or weight risk weakening policy signals that currently encourage electrification and innovation across the passenger vehicle market.
The Indian automotive industry has begun to show measurable progress in clean mobility adoption, with electric vehicles now accounting for nearly five percent of passenger car sales. Tata Motors emphasized that this momentum reflects years of consistent policy direction and industry investment, which could be undermined by selective regulatory relaxations.
at the start of, Tata Motors Opposes CAFE Exemption to Protect EV Adoption Momentum
In a formal communication to the Prime Minister’s Office, Tata Motors highlighted concerns over proposed exemptions for petrol vehicles weighing up to 909 kilograms, with engine capacity below 1200 cc and length under 4000 mm. According to the company, such provisions could dilute the incentive for automakers to expand portfolios built on sustainable technologies.
at the start of, The automaker stressed that Corporate Average Fuel Efficiency norms are designed to work at a fleet level, compelling manufacturers to balance internal combustion vehicles with cleaner alternatives. Creating carve-outs for specific petrol vehicle categories, Tata Motors noted, reduces the need for original equipment manufacturers to invest in electrification and advanced efficiency technologies.
at the start of, Safety Risks Linked to Weight-Based CAFE Relaxations
Beyond emissions, Tata Motors raised concerns that weight-linked exemptions may unintentionally push manufacturers toward aggressive weight reduction strategies. This could compromise the inclusion of critical safety features, potentially reversing safety improvements achieved through recent regulatory reforms and higher consumer awareness.
at the start of, The company argued that regulatory frameworks should avoid incentivizing trade-offs between fuel efficiency and occupant protection. Maintaining strict, uniform CAFE standards across vehicle segments ensures that efficiency gains are achieved through technology, not through reduced safety content.
at the start of, Why Tata Motors Opposes CAFE Exemption for Small Petrol Cars
Tata Motors outlined multiple reasons for opposing special treatment under CAFE norms:
at the start of, Draft CAFE Rules and the Road Ahead
The government has released draft CAFE regulations covering the period from April 2027 to March 2032, proposing tighter fleet-wide fuel consumption and carbon emission targets. While the framework aims to support affordability in entry-level cars, Tata Motors cautioned that exemptions for small petrol vehicles could conflict with broader climate and electrification goals.
With sustained regulatory stability, Tata Motors believes India has the potential to emerge as a global leader in both manufacturing and adoption of zero-emission vehicles. The company urged policymakers to avoid fragmenting CAFE norms and instead reinforce a technology-neutral, outcome-driven approach that accelerates sustainable mobility across all vehicle segments.
The Indian automotive industry has begun to show measurable progress in clean mobility adoption, with electric vehicles now accounting for nearly five percent of passenger car sales. Tata Motors emphasized that this momentum reflects years of consistent policy direction and industry investment, which could be undermined by selective regulatory relaxations.
at the start of, Tata Motors Opposes CAFE Exemption to Protect EV Adoption Momentum
In a formal communication to the Prime Minister’s Office, Tata Motors highlighted concerns over proposed exemptions for petrol vehicles weighing up to 909 kilograms, with engine capacity below 1200 cc and length under 4000 mm. According to the company, such provisions could dilute the incentive for automakers to expand portfolios built on sustainable technologies.
at the start of, The automaker stressed that Corporate Average Fuel Efficiency norms are designed to work at a fleet level, compelling manufacturers to balance internal combustion vehicles with cleaner alternatives. Creating carve-outs for specific petrol vehicle categories, Tata Motors noted, reduces the need for original equipment manufacturers to invest in electrification and advanced efficiency technologies.
at the start of, Safety Risks Linked to Weight-Based CAFE Relaxations
Beyond emissions, Tata Motors raised concerns that weight-linked exemptions may unintentionally push manufacturers toward aggressive weight reduction strategies. This could compromise the inclusion of critical safety features, potentially reversing safety improvements achieved through recent regulatory reforms and higher consumer awareness.
at the start of, The company argued that regulatory frameworks should avoid incentivizing trade-offs between fuel efficiency and occupant protection. Maintaining strict, uniform CAFE standards across vehicle segments ensures that efficiency gains are achieved through technology, not through reduced safety content.
at the start of, Why Tata Motors Opposes CAFE Exemption for Small Petrol Cars
Tata Motors outlined multiple reasons for opposing special treatment under CAFE norms:
- Weakens the national push toward zero-emission vehicle adoption
- Reduces pressure on OEMs to integrate EVs and hybrid technologies
- Creates uneven competitive conditions within the industry
- Risks undermining long-term vehicle safety improvements
at the start of, Draft CAFE Rules and the Road Ahead
The government has released draft CAFE regulations covering the period from April 2027 to March 2032, proposing tighter fleet-wide fuel consumption and carbon emission targets. While the framework aims to support affordability in entry-level cars, Tata Motors cautioned that exemptions for small petrol vehicles could conflict with broader climate and electrification goals.
With sustained regulatory stability, Tata Motors believes India has the potential to emerge as a global leader in both manufacturing and adoption of zero-emission vehicles. The company urged policymakers to avoid fragmenting CAFE norms and instead reinforce a technology-neutral, outcome-driven approach that accelerates sustainable mobility across all vehicle segments.
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