Updated: Sep 18, 2020

Automotive News | Auto Reporter

In 2014, The Indian Government announced the new Corporate Average Fuel Efficiency (CAFE) norms for passenger vehicles, which has specified the minimum fuel efficiency (in liters/100km) the passenger vehicles should meet. The CAFE norms were to be implemented in two phases: CAFE 1 & CAFE 2.

The CAFE 1 was implemented in 2017-18 and was specified for an average vehicle kerb weight of 1,037 kg with a CO2 limit of 130 g/km. The CAFE 2 which is set to be implemented in 2022-23 and based on an average vehicle kerb weight of 1,145 kg, which mandates the OEMs to reduce their fleet’s average CO2 emission to 113 g/km.

In other words, each OEM’s CO2 target is based on the average kerb weight of all the vehicles sold by the brand during a specific period.

As per data of FY 2019-20, For an average kerb weight of 1085 kg, The industry's CO2 emissions stood at 121g/km. This indicates that the industry should invest in technology and R&D to meet the upcoming limit of CAFE 2 norms. According to the JATO Dynamics' report, which analyzes the readiness of various OEMs to achieve the CAFE 2 norms, only 5 out of 25 OEMs seem to have it covered.

According to the survey, out of 25 automakers, only 18 have managed to achieve CAFE 1 norms and now in current time only 4 of them have a single-digit deficit to meet CAFE 2 norms.

Currently, India's leading OEM - Maruti Suzuki tops the list with the least CO2 emission of 108.6 g/km for an average kerb weight of 932 kg. While the Datsun and Renault are at second and third positions respectively and they are followed by Tata, Honda, Hyundai, and Volkswagen.

On the other side, Mitsubishi, Force Motors, JLR, Isuzu, and Mercedes are delivering the highest amount of CO2 emission among all OEMs.

BMW, Maruti Suzuki, Tata Motors, and Audi, these OEMs are closest to achieve the target of CAFE 2 norms. They need only a single-digit drop in their respective fleet average numbers of CO2 emission. The most interesting fact is, Volvo is the only OEM who already achieved the target of CAFE 2 norms.

In fact, the Swedish automaker's CO2 level is 2.8 g/km better than the target.

JATO Dynamics’ CAFE 2 white paper report clearly says that most of the automakers have to take some action to reach the target and reduce CO2 emission. We can consider major domination in complying with the BSVI norms, which plays a major role to correct the numbers of emissions. Also, some OEMs have to implement hybrid and fully electric cars and make them more sales as they help in the fast recovery of emission digits and a better move for future technologies.