What is WP-29? What are CAFE Norms? National Automotive Policy Aims for Holistic Development (Download PDF)


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Department of Heavy Industry is formulating National Automotive Policy for holistic development of automobile sector in India through a series of one to one stakeholder consultation.

Image of Reduction of Aggregate Pollutants since 1991

Image of Reduction of Aggregate Pollutants Since 1991

Image of Reduction of Aggregate Pollutants since 1991

Proposals of the Policies

Department has finalized the draft Automotive Policy that proposes to:

  • Adopt a long-term roadmap for emission standards beyond BS-VI and harmonize the same with global standards by 2028

  • Rollout CAFE norms till 2025 and beyond with appropriate incentives and penalties

  • Composite criterion based on length and CO2 emissions to classify vehicles for differential taxation purposes.

  • Harmonize automotive standards over the next 5 years in line with WP-29 (see later)

  • Improve skill development and training eco-system by increasing accountability of Automotive Skills Development Council and implement labor market information system.

  • Retain tax exemption on different levels of R&D expenditure with strong audit

  • Scale-up indigenous R&D with commercially viable innovations

  • Harmonize AIS and BIS standards on safety critical parts over next 3 years

  • Fast track adoption of Bharat New Vehicle Safety Assessment Program

What Are CAFE Norms?

  • India’s proposed corporate average fuel efficiency (CAFE) norms for all car-makers realign Indian with global auto industry.

  • CAFE requires cars to be 30 % or more fuel efficient from 2022 and 10 % or more between 2017 and 2021.

  • The mileage improvement will be decided based on litres of fuel consumed by a vehicle to run 100km. The move is targeted at reducing the carbon footprint of the automobile industry.

What is WP-29?

  • The World Forum for Harmonization of Vehicle Regulations (WP 29) offers globally harmonized regulations on vehicles- providing benefits of road safety, environmental protection and trade.

  • WP. 29 is a permanent working party in the institutional framework of the United Nations with specific mandate and rules allowing open discussions on motor vehicle regulations.

  • Any member country of the United Nations may participate in activities of the World Forum and become a contracting party to the Agreements on vehicles administered by the World Forum.

What is Bharat New Vehicle Safety Assessment Program?

  • The Bharat New Vehicle Safety Assessment Program (BNVSAP) is a proposed New Car Assessment Program for India.

  • The aim is to assign cars star ratings based on their safety performance. It will be implemented in phases with plans being drawn up by the National Automotive Testing and R&D Infrastructure Project.

  • It is the 10th NCAP in the world and is being set up by the government of India

  • Program was postponed to start from 2017 and within two years, new cars in India will need to comply with voluntary star ratings based on crash safety performance tests.

  • Critical safety features such as airbags, ABS and seat belt reminders will become standard in India resulting from rankings and mandatory crash testing.

- Published/Last Modified on: May 13, 2018

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