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

Introduction

The BEE has revised its draft fuel-efficiency norms effective June 2024, offering relief for small cars and incentives for flex-fuel and strong hybrid vehicles.

Background

• Maruti Suzuki requested special relief for small cars under the CAFE-3 and CAFE-4 norms.
• Opposition from other manufacturers like Tata Motors and Mahindra & Mahindra.
• CAFE norms set targets for carbon-dioxide emissions measured in gm/km.

Revised Draft Highlights

• Classification of Small Cars: First-time separate classification for small cars weighing up to 909 kg, engine capacity ≤ 1,200 cc, and length ≤ 4,000 mm.
• Special Treatment for Small Cars:
  • Eligible for an extra reduction of 3 gm/km in declared emissions.
  • Cumulative reduction capped at 9 g/km of CO₂.

Volume Derogation Factor

• Multiplier for fleet carbon-dioxide calculations.
• Factor for EVs maintained at three, strong hybrids at two, benefiting companies like Maruti Suzuki and Toyota.

Carbon Neutrality Factor (CNF)

• Introduced for vehicles using cleaner fuels or hybrid technology.
• Discounts: 
  • E20-E30 petrol: 8%
  • CNG: 5% or higher
  • Flex-fuel ethanol & strong hybrids: 22.3%

Implementation and Feedback

Stakeholders have 21 days to respond to the draft norms. No immediate response from major carmakers was reported.

Conclusion

• Full volume derogation factor of 2 retained for strong hybrids.
• Flex-fuel and strong hybrid cars get 22.3% lower CO2 under CNF.