Carmakers may end up paying penalties for missing emissions targets: Report

CAFE scores are designed to encourage carmakers to focus on technologies that reduce CO2 emissions

Major carmakers in India face the risk of paying cumulative penalties between Rs 3,600 crore and Rs 5,800 crore for failing to meet the government-prescribed fuel economy standards by April this year, according to a report in The Economic Times.

The report said only a handful of carmakers – such as Maruti Suzuki, Tata Motors and MG motor – are likely to escape the penalties prescribed under Corporate Average Fuel Economy (CAFE) II norms.

Under CAFE, penalties will be imposed on a manufacturer’s entire fleet. Experts say most carmakers are likely to exceed the targeted score.

The Energy Conservation Bill,