03 Jul 2025
India’s Leading CV Makers Seek Relief from Fuel Norms for Sub-3.5 Tonne Vehicles
Tata Motors, Mahindra & Mahindra, and other top commercial vehicle (CV) manufacturers are asking the government to exclude small commercial vehicles (SCVs) from the upcoming Corporate Average Fuel Efficiency (CAFE) 3 norms. These norms are meant to push vehicles to be more fuel-efficient. However, companies say that applying them to SCVs under 3.5 tonnes will make these vehicles costlier, making it difficult for small business owners to afford them.
Impact on Small Business Owners and Drivers
In India, more than 80% of SCV owners are also the drivers. These are people who depend on their vehicles for daily income. The companies shared data showing that buying a new vehicle in India costs more than 40 months of income for such owners. In comparison, a similar purchase in Europe only takes 9–10 months of earnings. This clearly shows the affordability gap.
Moreover, SCV owners in India usually earn between ₹5 lakh and ₹12.5 lakh per year. This makes the segment highly sensitive to any price increase. Adding the cost of new fuel-saving technologies will only push vehicle prices higher and may hurt small transport businesses.
Manufacturers Suggest Reporting Instead of Norms
The truck makers have proposed a different solution. They are not against fuel efficiency goals but suggest that SCVs be temporarily exempted. Instead, they will report yearly data to the Bureau of Energy Efficiency (BEE). This report will include how many SCVs were sold by each company, the types of fuel used, and the average CO2 emissions from the vehicles.
A Step Towards Better Policy Making
CV manufacturers believe that a data-first approach will help the government create policies that suit the Indian market better. By understanding how these vehicles are used and what their emissions look like, better and more balanced rules can be formed in the future. For now, they simply ask that SCVs under 3.5 tonnes be kept out of the stricter CAFE 3 norms to protect both businesses and livelihoods.
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