India's stricter fuel efficiency norms reach PMO

India's automotive sector is currently navigating the implications of the new Corporate Average Fuel Efficiency (CAFE II) norms, which have sparked a divide among industry stakeholders. One faction is advocating for incentives aimed at promoting the production and sale of smaller, lighter vehicles, which could lead to enhanced fuel efficiency and reduced emissions. Conversely, another group is opposing the idea of any benefits tied to vehicle weight, arguing that such measures could distort market dynamics and lead to unintended consequences. As these discussions reach the Prime Minister's Office (PMO), the outcome will significantly impact the future of vehicle manufacturing and environmental policy in India. The CAFE II norms aim to push the auto industry towards greener technologies, aligning with global sustainability targets while addressing local market needs. The ongoing debate highlights the complexities of balancing economic viability with environmental responsibility, as the Indian auto industry positions itself to adapt to these regulatory changes.