India has initiated the process of bringing two-wheelers under the Corporate Average Fuel Efficiency (CAFE) framework, marking a significant step towards expanding fuel efficiency and emission regulations beyond passenger cars. The Bureau of Energy Efficiency (BEE) has begun consultations with two-wheeler manufacturers to develop fleet-wide fuel efficiency and carbon emission targets, while also proposing a star-rating system for electric two-wheelers. The move comes as policymakers seek to reduce emissions from the country’s largest vehicle segment, even as manufacturers call for more time to adapt to the new regulatory landscape.
According to industry sources, the BEE, a statutory body under the Ministry of Power, recently convened a meeting with two-wheeler manufacturers to discuss the proposed CAFE framework, which will cover both internal combustion engine (ICE) and electric models sold or imported in India. The framework is expected to set progressively stricter fleet-wide fuel efficiency and carbon dioxide emission targets for manufacturers.
Legacy two-wheeler manufacturers, including Hero MotoCorp, Bajaj Auto and TVS Motor Company, have requested a six-month extension before discussions move forward. The companies argue that the BEE is relying on 2021-22 data, which predates the nationwide adoption of E20 (20% ethanol-blended petrol) as the standard fuel. They contend that updated data reflecting the impact of E20 fuel on fuel efficiency and emissions is essential before finalising the norms.
Manufacturers are expected to submit updated figures covering fuel efficiency, declared carbon dioxide emissions and other technical parameters. The BEE has also constituted a dedicated technical committee to evaluate the industry data before drafting the final regulations.
Unlike conventional emission standards that apply to individual vehicle models, CAFE regulations establish fleet-wide average fuel consumption and emission targets for automakers over a financial year. The framework encourages manufacturers to improve overall efficiency across their product portfolios rather than focusing on individual models.
Alongside the proposed CAFE norms, the government is planning to introduce a voluntary five-star energy efficiency rating system for electric two-wheelers. Similar to the star labelling programme used for household appliances, the initiative aims to provide consumers with greater transparency on energy efficiency and certified riding range. The voluntary programme is expected to remain in place for two years before becoming mandatory.
The regulatory push comes amid broader efforts to accelerate electric vehicle adoption. The proposed Delhi EV Policy seeks to allow registration of only electric two-wheelers from April 2028, effectively ending new registrations of petrol and CNG-powered motorcycles and scooters in the capital.
However, the proposal has drawn strong opposition from the Society of Indian Automobile Manufacturers (SIAM), which argues that replacing older pre-BS IV vehicles would have a far greater impact on reducing pollution than restricting new BS VI-compliant ICE models. According to SIAM, nearly all particulate matter emissions from two-wheelers originate from older vehicles, while BS VI-compliant motorcycles and scooters produce negligible particulate emissions.
The industry body has also highlighted the limited availability of electric motorcycles that can match the cost and performance of conventional models, particularly as motorcycles account for nearly two-thirds of two-wheeler sales in Delhi. Manufacturers have further raised concerns about supply chain vulnerabilities, citing dependence on China for critical EV components such as rare-earth magnets.
Despite these concerns, both the Central and Delhi governments appear committed to tightening emission regulations and accelerating the transition towards cleaner mobility, indicating that the two-wheeler industry may soon face stricter fuel efficiency standards and stronger electrification mandates.
