Hooking the Brakes on Pollution
India's two-wheeler market, one of the largest globally, is on the cusp of a significant transformation. The government has kickstarted the process to frame Corporate Average Fuel Efficiency (CAFE) norms for two-wheelers, a move aimed at curbing emissions from a sector that has long been criticized for being too 'car-centric'. According to the Economic Times, the Bureau of Energy Efficiency has initiated consultations with the automobile industry to set fleet-wide emission targets for two-wheelers.
The CAFE Framework: A New Era for Two-Wheelers
A summary of the proposed CAFE framework and its implications on the two-wheeler sector is essential to understand the upcoming changes. The framework will cover both Internal Combustion Engine (ICE) and electric two-wheelers. Per the source article, the star rating system being proposed will be voluntary for up to two years before the government makes it mandatory. The Bureau of Energy Efficiency has formed a separate technical committee to evaluate the data from two-wheeler OEMs before proposing CAFE norms.
Challenges and Contradictions
The industry has sought more time to collect recent data after E20 was introduced. Additionally, the Society of Indian Automobile Manufacturers (SIAM) has suggested that pre-BS IV two-wheelers contribute 99.5% of PM emissions and should be phased out instead of banning new ICE registrations. The industry has also made representations against the proposed Delhi EV policy, citing feasibility and supply chain risks.
Future Outlook: A Bumpy Road Ahead
The long-term outlook for competitors and markets is uncertain. As the industry navigates the complexities of CAFE norms, electric two-wheelers are likely to gain traction. However, the transition to cleaner mobility will be hindered by feasibility concerns and supply chain risks. According to the source, the government's 'car-centric' approach may need to be reevaluated to accommodate the unique needs of the two-wheeler sector.