CAFE 3: OEMs clash over small car CO2 relaxation; global norms vary.

• India's draft CAFE 3 regulations, effective 2027-2032, propose a 3 g/km CO2 reduction for lightweight vehicles (under 909 kg, 1200cc, 4m length), sparking industry debate.
• The new CAFE 3 standards shift from a fixed CO2 target (CAFE 2) to a weight-based annual fuel-consumption formula.
• Maruti Suzuki supports the lightweight vehicle allowance, citing global precedents for small car relaxations in efficiency norms.
• Tata Motors, Mahindra, Hyundai, and JSW MG oppose special weight-based concessions, arguing against arbitrary criteria that could compromise safety.
• Global fuel efficiency models integrate weight structurally (curves/classes) rather than offering fixed per-model CO2 deductions, unlike India's draft provision.

Why It Matters: New CAFE 3 rules create industry division, shaping India's future car market.