Shailesh Chandra, President of SIAM, addresses members during a meeting on draft fuel efficiency norms.
The Society of Indian Automobile Manufacturers (SIAM) is currently reviewing the draft CAFE III (Corporate Average Fuel Efficiency) norms, signaling a crucial phase for the Indian auto industry as it navigates evolving fuel efficiency standards. SIAM’s President, Shailesh Chandra, indicated that discussions with members are underway to assess manufacturer readiness concerning the implementation timeline, according to economictimes.indiatimes.com.
While Chandra declined to comment on the specifics of proposed incentives for small cars, citing differing views among manufacturers, SIAM is advocating for an enabling environment that supports the adoption of electric vehicles (EVs). This approach suggests a preference for market-driven EV adoption rather than mandates, aligning with the industry’s broader concerns about technological transitions and investment strategies.
The review of CAFE III norms and the emphasis on EV adoption highlight the balancing act the Indian auto industry faces. Manufacturers must comply with increasingly stringent fuel efficiency standards while simultaneously investing in the development and promotion of electric vehicles. The outcome of SIAM’s discussions will likely influence the pace and direction of the industry’s shift toward more sustainable mobility solutions.
The industry’s perspective, as represented by SIAM, underscores the importance of government policies that foster innovation and investment in both fuel-efficient technologies and electric vehicles. The approach taken on CAFE III implementation and EV incentives will be critical in shaping the future of the automotive sector in India.
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