Carmakers split over CAFE 2 credit proposal as India readies tougher fuel-efficiency norms
Tata Motors Passenger Vehicles and JSW MG Motor oppose retrospective CAFE 2 rules that could let lagging automakers buy regulator-issued compliance credits. Maruti Suzuki, Hyundai and Mahindra broadly support the proposal, raising the risk of delays before CAFE 3 begins in April 2027.
Tata Motors PV and JSW MG oppose retrospective CAFE 2 credit rules that would let lagging automakers buy compliance credits from the regulator. Maruti, Hyundai and Mahindra broadly support the proposal, risking delays to finalising fuel-efficiency norms.
Why this matters
The policy stance comes as Tata Motors PV targets 1.2 million annual sales and 20% market share by FY31, while Punch and Nexon output rose 47% in Q1.
retail-company is accelerating, up 1,020,800% QoQ.