{"id":101146,"date":"2026-02-24T18:39:50","date_gmt":"2026-02-24T21:39:50","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/895204634"},"modified":"2026-02-24T18:39:50","modified_gmt":"2026-02-24T21:39:50","slug":"automakers-may-trade-credits-to-meet-cafe-norms","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/24\/automakers-may-trade-credits-to-meet-cafe-norms\/","title":{"rendered":"Automakers may trade credits to meet CAFE norms"},"content":{"rendered":"

New Delhi: India plans to allow automakers trade fuel-efficiency credits<\/a> among themselves, creating a broader market mechanism to help companies meet the stricter Corporate Average Fuel Efficiency (CAFE) norms and avoid government penalties, said officials familiar with the plan.<\/p>\n

The move will let automakers exceeding fuel-efficiency<\/a> targets to sell surplus credits to those who are lagging, boosting the latter’s scores. “Pooling and trading of carbon credits is a globally established model,” said a senior industry executive, who didn’t wish to be named. “In such a mechanism, manufacturers who do not meet emission guidelines can purchase credits from companies who have surplus.

Also read: EVs likely to lose zero-emission tag under CAFE III<\/a><\/b><\/p>\n

Technically, we cannot say there is no penalty as those deficient would have to pay a price. Pooling allows market forces to take over…” Automakers will have to choose from a dozen approved technology interventions such as electric water pumps<\/a>, regenerative braking<\/a>, and solar reflective paints to lower average fleet emissions<\/a> and gain fuel-efficiency credits. This is against the industry’s demand for 124 such technologies. The proposals form part of the draft CAFE norms<\/a> being examined by the government.<\/p>\n

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\"Automakers<\/figure>\n<\/div>\n

The latest plans would offer automakers some relief. A September 2025 draft on CAFE-III norms<\/a> had proposed a limit on forming a single compliance pool to a maximum of three original equipment manufacturers (OEMs).

“This three-OEM cap has now been removed,” a senior official told ET, adding the latest alteration of the CAFE norms<\/a> would permit an unrestricted number of automakers to form a single entity for regulatory evaluation.
Also read: India may take middle path for car companies under CAFE III: What it means for small and large players<\/a><\/b><\/p>\n

Points System<\/strong><\/h2>\n

As per the proposed norms, sellers of electric vehicles (EVs) or range-extender hybrid EVs will be given three super credits, while fuel-efficient Internal Combustion Engine (ICE) cars will fetch one point.<\/p>\n

Each OEM will need to earn a minimum number of points or credits linked to the weight of the vehicles they sell. Those failing to comply with the CAFE-III norms could face financial penalties.<\/p>\n

Baseline metrics for calculating fleet emission targets is also expected to be updated in CAFE-III, making it technically harder for companies to meet the goals.<\/p>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… : India plans to allow automakers<\/span> trade fuel-efficiency credits among … . The move will let automakers<\/span> exceeding fuel-efficiency targets to … The latest plans would offer automakers<\/span> some relief. A September … an unrestricted number of automakers<\/span> to form a single …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-101146","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/101146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=101146"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/101146\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=101146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=101146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=101146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}