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BEE revises fuel-efficiency norms, gives relief to small cars for 1st time

26 Sep 2025
2 min

Bureau of Energy Efficiency (BEE) Revised Fuel-Efficiency Norms

The Bureau of Energy Efficiency (BEE) has introduced revisions to the draft fuel-efficiency norms, providing special relief for small cars while offering incentives for flex-fuel and strong hybrid vehicles. These changes follow a significant debate within the automobile industry.

Key Changes in Revised Draft

  • Small Cars:
    • Separate classification for small cars, defined as weighing up to 909 kg, with an engine capacity of 1,200 cc or less, and a length not exceeding 4,000 mm.
    • Small cars can claim an additional 3 gm/km reduction in declared emissions on top of certified technology-based savings.
  • CAFE Norms:
    • Maruti Suzuki benefits from the revised norms as the largest producer of small cars in India.
    • Caps the cumulative reduction benefit for small cars at 9 g/km of CO₂ in any reporting period.
  • Volume Derogation Factor:
    • Maintained at three for electric vehicles (EVs) and two for strong hybrids, benefiting companies like Maruti Suzuki and Toyota.
  • Carbon Neutrality Factor (CNF):
    • Introduced for vehicles using cleaner fuels or hybrid technology.
    • Petrol cars on E20-E30 fuel blends receive an 8% reduction, CNG vehicles a 5% reduction, and flex-fuel ethanol vehicles and strong hybrids a 22.3% discount.

Industry Response and Feedback

  • Automobile companies have 21 days to provide feedback on the new draft norms.
  • Major carmakers such as Maruti Suzuki, Hyundai, Tata Motors, and others did not respond to inquiries about the new draft norms.

Implications for Strong Hybrids

  • Strong hybrids running on flex fuel can benefit significantly from the CNF, with emissions calculated at lower levels for compliance.
  • Currently, models from Toyota and Maruti Suzuki do not qualify for the full CNF discount as they run on regular petrol.

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