Brake on emissions: As India plans CAFE norms, a look at regulations followed globally across US, other automotive markets
Framework gives heavier vehicles more relaxed absolute CO2 limits
Smaller cars get a much more stringent target
Target on fuel economy (miles per gallon) based on car footprint (square feet) of the car
Follows a piece-wise linear approach
Comparatively relaxed targets for smaller cars
CHINA Target on fuel consumption (l/100 km) based on curb weight of the car
Follows a piece-wise linear approach
Target does not keep on tightening indefinitely for smaller, lighter cars
Live Events
Target on fuel economy (km per liter) based on the curb weight of the car
Smaller, lighter cars are not subjected to increasingly stricter targets as weight reduces
OEMs get extra advantage of 5–7g/km in their CAFÉ performance
Based on sales ratio of small cars in their portfolio
Target on fuel economy (km per liter) based on curb weight
Follows a non-linear (quadratic curve)
Small light-weight cars are not subjected to disproportionately higher targets
Bigger cars have a lower absolute CO2 target
Smaller cars have relaxed targets
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
India is in the process of holding consultations ahead of the formalisation of CAFE ( Corporate Average Fuel Efficiency ) 3 norms, scheduled to come into force from April 1, 2027.India currently caps average emissions of all passenger vehicles weighing less than 3,500 kg sold by each manufacturer at 113 gm of carbon dioxide per kilometre. This means that some models can have higher emissions if the manufacturer has fuel-efficient vehicles in its portfolio.A car's CO2 emissions are directly proportional to the amount of fuel it consumes. Here is a look at the regulations followed globally across all major automotive markets , including the US, China, Japan, Korea, and Europe.As per the report titled 'Deep Dive into Global Practices on CAFE Regulations' by Nomura, India must reform CAFE regulations as light-weighting, a key decarbonisation strategy , is disincentivised In India. India must adopt global best practices like footprint-based or piece-wise linear models to ensure equitable treatment of small cars and support affordable low-emission mobility
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Rahul Gandhi says 'Modi will meekly bow to Trump tariff deadline', mocks Piyush Goyal's remarks
— RahulGandhi (@RahulGandhi) Goyal reiterates India's firm trade negotiation stance Live Events Focus on toy sector's global potential (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Leader of Opposition in the Lok Sabha Rahul Gandhi , on Saturday took a swipe at the government over its handling of trade negotiations with the United States, claiming that Prime Minister Narendra Modi would "meekly bow" to Washington's tariff comments came a day after Union Commerce Minister Piyush Goyal declared that India does not enter into trade agreements under time pressure or external a media report on the ongoing India-US trade discussions, Gandhi posted on X: 'Piyush Goyal can beat his chest all he wants, mark my words, Modi will meekly bow to the Trump tariff deadline .'Commerce and Industry Minister Piyush Goyal had on Friday stated that India's trade policy is rooted in national interest and guided by the principle of mutual benefit."It should be a win-win agreement, and only when India's interests are safeguarded — national interest will always be supreme — and keeping that in mind, if a good deal is formed, India is always ready to engage with developed countries," Goyal said on the sidelines of the 16th Toy Biz B2B Expo in New India's consistent approach to trade talks, Goyal added, 'India never enters into trade deals based on deadlines or time pressure. A deal is accepted only when it is fully matured, well-negotiated, and in the national interest.'The minister confirmed that India is in discussions with several countries including the United States, the European Union, New Zealand, Oman, Chile, and Peru. However, he maintained that the mere number of negotiations underway does not imply haste."A Free Trade Agreement is only possible when there is mutual benefit," he the Toy Biz Expo , Goyal also praised the progress of India's toy manufacturing industry . He said, 'I am sure with the high quality goods I am seeing here, they will all be finding good market with the whole Gulf region, all the six countries of the Middle East, as they are today finding in nearly 153 countries in the world.'He added that the government is planning more support for the sector: 'We will soon be coming out also with the support program and incentive scheme to support the toy industry.'Highlighting India's domestic demand, Goyal said, 'Considering that we have a market of 1.4 billion Indians who would like to use toys. At every age, there is a demand of toys.'He called the toy sector 'a growing sector which have eyes on the world,' underlining both its export and domestic potential.
Time of India
3 hours ago
- Time of India
Trump signs 'take it or leave it' tariff letters for 12 countries, going out Monday
Tariff deadline nears amid faltering trade talks Live Events Deals with UK and Vietnam; India, EU talks stall (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel US President Donald Trump on Friday said he has signed a set of letters outlining proposed tariff levels on exports from 12 countries, with the missives set to be sent out on Monday. The offers, he said, would be non-negotiable — a "take it or leave it" proposition to U.S. trading to reporters aboard Air Force One en route to New Jersey, Trump declined to identify the countries receiving the letters, saying their names would be revealed on Monday."I signed some letters and they'll go out on Monday, probably twelve," he told reporters. "Different amounts of money, different amounts of tariffs."The plan marks a shift from earlier this week, when Trump had indicated that the first batch of letters would be sent on Friday — a national holiday — though the timing has now been April, Trump unveiled a base tariff of 10% on most goods entering the U.S., with the possibility of higher rates — up to 50% — for certain countries. Those elevated tariffs were put on hold for 90 days to allow time for negotiations, but that suspension is set to expire on July on Friday suggested the tariffs could go even higher, potentially reaching 70% for some countries, with most new rates expected to take effect from August White House initially aimed to negotiate customized tariff deals with several nations, but frustrations over stalled talks with key players like Japan and the European Union appear to have prompted a change in approach."The letters are better ... much easier to send a letter," Trump said, indicating a preference for direct, unilateral communication over protracted negotiation far, Washington has concluded agreements with just two countries. The United Kingdom secured a deal in May to maintain the 10% base rate and obtained preferential treatment in sectors like automotive and aircraft engines. Vietnam also reached a deal, agreeing to a reduced tariff of 20%, down from a proposed 46%, and allowing duty-free entry for many U.S. with India have not yielded results, and EU diplomats said Friday that talks with the Trump administration had failed to break the deadlock. European negotiators are now considering maintaining current trade terms in hopes of avoiding further tariff Trump's earlier prediction that broader trade deals might be sealed before the July 9 deadline, there was no indication on Friday of such agreements being finalized.
Economic Times
4 hours ago
- Economic Times
Canva, Copilot, ChatGPT: The AI toolkit MSMEs need today
As AI rapidly transforms how businesses operate, India's MSMEs are uniquely positioned to leverage its potential—if they can get the approach right. As artificial intelligence (AI) rapidly transforms how businesses operate, India's micro, small, and medium enterprises (MSMEs) are uniquely positioned to leverage its potential—if they can get the approach right. In a recently hosted webinar for ET MSME Day 2025. Punit Thakkar, CEO of Shivaami, shares practical insights on how MSMEs can begin their AI journey, the tools they should prioritise, and the mindset shift required to thrive in an AI-driven future. Drawing from his experience working with over 20,000 SMEs, Thakkar emphasises that identifying pain points, aligning technology with business goals, and starting small with easy-to-use solutions can make AI adoption both accessible and impactful for MSMEs. Edited excerpts. Economic Times: Where should an MSME start their AI journey? Punit Thakkar (PT): When it comes to AI, or in fact any technology, the start for any business should be to identify their pain point and then look at the solutions available. Let's simplify it by assuming a scenario that you have some repetitive tasks you want to get rid of and save cost. AI is the answer to that question. So, MSMEs should look at identifying the pain area first and then identify the solutions which AI can offer and then start by adopting it and aligning it with the business goals. Sometimes the business goal is saving, and sometimes the business goal is looking forward and taking the enterprise to the next level. Watch the full coverage of ET MSME Day 2025 ET: What are some of the AI tools that SMEs must leverage to grow further as a business enterprise? PT: I deal with 20,000 MSMEs and they are my customers. The first tool which I always recommend is Google Workspace and Microsoft Copilot right. These are the two tools which have an inbuilt AI. Again, if you look at the AI race, these are the two big companies who are in the forefront of it. So, Google Workspace has Google Gemini which helps you from drafting your mail to analysing and summarising it. Plus, you have document creation, etc which makes it a very good tool for collaboration and AI adoptionThe second tool which I recommend to my customers is Canva. You can create whatever image you want, create it in just 5 minutes. Earlier you depended on graphic designers to create something and then here you are, with Canva you can just command and it does it for third tool that I insist on my customers to use is called Suno. It creates music for you- from simple prompts, images or videos, write original lyrics, create a playlist and many more such features. When the environment is musical, you are more productive right and I have used this tool to create so many songs for my own company. I just play it in my office and people love it. Similarly, you can use the very popular ChatGPT, Google Gemini, Zoho has Zoho Zia for analysing our own CRM data, which essentially means there are multiple tools available in the market. Most of these tools are very easy to use, the technology is simple for anyone to understand and adapt. ET: What strategies can SMEs deploy to integrate AI tech better into their businesses? What are some of the low hanging fruit adoptions that SMEs should consider in AI? PT: I deal with many MSMEs and what I have realised is that most of the time they look at the cost, but they do not look at the opportunity. AI opens the door for bigger and better opportunities, and if you want to win the battle of tomorrow, you need the tools of today. So, most of the time MSMEs do not invest, they look at the cost. Now let us take a simple example like WhatsApp. Can they have auto replies on WhatsApp? We can all have it, and that is a simple AI tool. Similarly, there are AI tools to help you when participating in exhibitions. For example, it will capture the details of the visitor and send them an email, WhatsApp, with the catalogue, price list, whatever the exhibitor wants. My company generates approximately 10,000 invoices daily via automated systems, yet only two people are involved in the process. These two employees are only needed to validate that these invoices are correctly generated and randomly checked for any you can use an AI chatbot on your website to answer simple questions that your buyer or visitor may have. Everything from automating WhatsApp to invoicing to chatbots are very simple tools today and these are not very costly. They are as pay as you go models and if you do not like them, you can cancel the subscription next month. ET: Tasks such as inventory management, customer service and accounting can be automated using AI, freeing up valuable time for business owners to focus on strategic activities. Do you feel AI is the next frontier for the MSME sector? PT: First, it was the industrial revolution, then came the knowledge revolution, and today it is the time of the AI revolution. A few days ago, this report said Google took five years to get its first billion users, ChatGPT took hardly one year, So, practically it is 5X faster and if you look at the Chat GPT user base, India stands number one, followed by the US. We are in the frontier of AI and it is just that we need to change our mindset, especially when it comes to MSMEs prioritising their focus area, prioritising their investment, and making sure that they identify if AI can help them.I feel we are in the forefront of AI and we are going to reap the benefits of it, but at the same time we have a challenge. We have a problem where many people are not IT-skilled or say AI-skilled and this means there is going to be a huge divide between AI-enabled and non-AI enabled companies.
