The 2022 deadline for stricter emission rules could pummel the automakers – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/auto/cars-uvs/the-2022-deadline-for-stricter-emission-rules-could-pummel-the-automakers/articleshow/81889038.cms

SynopsisIf these weren’t enough, now the 2022 deadline for stricter emission rules called corporate average fuel efficiency 2 or CAFE 2 could leave them out to dry, say automakers.

The rattle doesn’t seem to end for automakers. First the pandemic choked them. Then the rush to implement BSVI emission norms by April 2020 is leaving them out of breath. If these weren’t enough, now the 2022 deadline for stricter emission rules called corporate average fuel efficiency 2 or CAFE 2 could leave them out to dry, say automakers.

The companies say the upcoming rules require significant investments in technology and R&D. They want the government to give them some more time, especially since BSVI standards have just been achieved. But the government appears to be firm on its stance of implementing CAFE 2 by April 2022.

The Calculation

Each carmaker’s CO2 target is based on the average kerb weight of all the vehicles sold by the company during a specific period

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Four Drivers
The government has approved four energy efficient technologies — regenerative braking, start/stop, tire pressure monitoring system, 6-speed gear system — for super credits under CAFE norms. Of the top 20 models by sales, individual feature penetration of the top 4 are:

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“With Tigor EV and Nexon EV, we have further improved our numbers to give us sufficient headroom to meet these upcoming regulations”

— Rajendra Petkar, President & CTO, Tata Motors

The AdvantagesThe Opposition
CAFE aims to cut fuel consumption and CO2 emissionsManufacturers say they will have to readjust their portfolios quite a bit to meet the norms
Will help in reducing pollution and dependence on oil importsSIAM wants implementation put off till April 2024
Norms to cover petrol, diesel, LPG and CNG vehiclesAll stakeholders claim the industry is still recovering from the impact of Covid and slow consumer demand
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“As with every manufacturer, it is not model by model compliance that matters but how we are meeting the fleet average regulatory limits”

— Vikram Gulati, Country Head and Senior Vice President, Toyota Kirloskar Motor
How Far to Go
None of the players have achieved the CO2 targets so far

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“We have a road map to implement the norms. There is a development cost and an additional material cost increase that will have an impact on vehicle prices”

— Rajesh Jejurikar, Executive Director, Auto & Farm Sectors, M&M

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