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The Centre has imposed a Rs 7,300 crore penalty on eight automakers, for violating CAFE norms in FY 22-23.

Details 

The Union Government has identified eight automakers for exceeding fleet emission levels, including Hyundai, Kia, Mahindra, and Honda. 

The estimated penalty for non-compliance with CAFE norms in FY22-23 is around Rs 7,300 crore. Hyundai faces the highest penalty of over Rs 2,800 crore.

About Corporate Average Fuel Efficiency (CAFÉ) norms

The Government notified the norms in 2017 under the Energy Conservation Act, 2001 to reduce fuel consumption by lowering CO₂ emissions.

The objective of CAFE standards is to reduce oil dependence and air pollution by regulating fuel consumption and carbon emissions in passenger vehicles.

CAFE norms apply to vehicles weighing less than 3,500 kg, including those powered by gasoline, diesel, LPG, CNG, hybrids, and electric vehicles.

These norms were implemented in two stages: the first CAFÉ norms stage I fuel consumption standards became effective in 2017-18, and the CAFÉ norms stage II standards came into effect in 2022-23.

Penalties for non-compliance with CAFE norms

Penalties are determined by the number of non-compliant vehicles sold, with fines of Rs 25,000 per vehicle for minor deviations and Rs 50,000 per vehicle for significant non-compliance, in addition to a base fine of Rs 10 lakh.

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CORPORATE AVERAGE FUEL EFFICIENCY (CAFE) STANDARDS

ELECTRIC VEHICLES

Source: 

Business Standard