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India CAFE Series · Part 7 · The Platform
ProcessSix StepsCAFE-II & CAFE 2027

TerraNova for CAFE: The Six Steps That Make the Compliance Picture

One workspace to manage, plan, forecast and trade India CAFE — from fleet capture and reporting to the OEM-to-OEM credit market.

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By Climate Decode · · 11 min read

Process steps
6
From fleet capture through credit-market watch — one workflow
Compliance regimes covered
Both
CAFE-II (FY23-27) and CAFE 2027 (FY28-32) under one roof
Scenario toggles
Sept ▸ Feb
Draft toggle per The Hindu layer; April 2026 cuts run as a scenario
In This Article
Orientation

What the Workspace Is Actually For

CAFE compliance has historically been a once-a-year filing exercise built in Excel by the OEM's emissions and certification team. TerraNova for CAFE turns it into a continuously updated operating picture — one that survives the CAFE-II to CAFE 2027 regime change, the WLTP transition when MoRTH eventually notifies it, the potential gaps between the September 2025 published draft and the February / April 2026 revised drafts circulated to industry, and the new credit market that opens up alongside.

It does this through six steps that mirror the TerraNova process across all compliance markets — adapted for the specific moving parts of India CAFE.

Built for the Four Desks That Own CAFE

One workspace, four operating views — each desk sees the same fleet ledger through its own lens.

Compliance / Emissions Heads
Own the Section 4(8) pi filings. Variant-level ledger, dual-cycle reporting, BEE-format submission — continuously, not annually.
Key Outcome
Filings Right, First Time
Treasury Heads
Own the penalty and credit-market exposure. Section 26 schedule, bank-vs-sell calls, scenario clearing prices.
Key Outcome
Exposure Priced, Not Guessed
Strategy Heads
Own the decarb-lever and BEV-ramp portfolio. MAC-ranked sequencing that re-ranks when a draft layer moves.
Key Outcome
Lowest-Cost Path to Compliance
Investor Relations
Own the external narrative. Labelled numbers — draft, model, assumption — that survive diligence.
Key Outcome
A Narrative That Holds Up
1 FLEET CAPTURE & REPORTING

Your obligation, managed and reported.

Every variant, both test cycles, one live ledger — your BEE reporting pack comes straight out of it.

  • Variant-level fleet ledger, always current
  • MIDC + WLTP values in one place
  • Direct BEE-format reporting pack
  • Fed by VAHAN, SIAM and ARAI data
Sources & Settings — FeedsOnboarding complete
Variants captured
412
Weighted mass W
1,182 kg
VAHAN registrations — monthly dispatch + segment shareslive
SIAM dispatch feedlive
ARAI model certification — pi MIDC + WLTPlive
BEE passbook mirror — official credit balancepending · awaiting BEE API
BEE-format submission · export ready

Conceptual workspace view — illustrative data.

2 POSITION COMPUTATION

See where you stand — instantly.

The full CAFE math, run on your own fleet — under whichever draft applies.

  • Your compliance margin in one number
  • See what each lever contributes
  • Toggle Sept / Feb drafts — April cuts as a scenario
  • Penalty exposure visible before year-end, not after
Dashboard — Fleet PositionRegime: CAFE-II ▸ CAFE 2027
CAFE-II margin (FY26)
+8.8 g
FY28 gap (CAFE 2027)
−0.13 L
Super-credits vi (Table 3)−0.28 L
Off-cycle ci (≤9 g/km cap)−0.06 L
CNF discount (Section 4(5))−0.09 L
Draft toggleSept 25 ▸ Feb 26 · Apr 26 scenario
Anchored to BEE Sept 2025 draft · MIDC until MoP notifies

Conceptual workspace view — illustrative data.

3 DECARB PLANNING

Plan upgrades. See the impact live.

Model switches, hybrids, EVs, off-cycle tech — ranked by what closes your gap cheapest.

  • Every lever ranked by cost per gap closed
  • Launch and switch scenarios in one click
  • Live impact on your position as you plan
  • Re-ranks automatically when the rules move
Decarb — MAC-Ranked Portfolio6 lever families
Full LED · entry lineup (off-cycle)0.5 g · MAC −₹12.0K/t
Electric water pump (off-cycle)0.7 g · MAC −₹8.5K/t
Punch Strong-Hybrid (SHEV)2.0× Sept draft · 1.6× Apr scenario
Nexon platform lightweight (mass)curve relief
Sierra EV (Acti.EV+) · FY28 (BEV)3.0× Table 3
EV · SHEV · off-cycle · mass · powertrain/RDE · discontinuation

Conceptual workspace view — demo fleet, illustrative levers and MACs.

4 INCENTIVE STACK

Know the real per-car economics.

Every incentive stacked on every model — net numbers, not sticker prices.

  • GST, PLI, state policy and super-credit in one waterfall
  • Per model, per state, per year
  • See which benefits are durable and which are policy-exposed
Incentive Stack — Value Waterfall4 components
GST gap (5 vs 18/40%)largest
State EV policyby state
PLI-Auto pass-throughslab-based
CAFE super-creditpolicy-exposed
PLI-Auto status (MHI) — AAT claim · disbursementfeed: live
₹ values computed per model · platform output

Conceptual workspace view — illustrative bars, no ₹ values.

5 COMPLIANCE FORECASTING

Your 5-year position — short and long.

FY28–FY32 forecast, with and without your plan — pools included.

  • Year-by-year surplus or deficit to FY32
  • BAU vs with-plan, side by side
  • Pool with up to 3 OEMs and see the combined position
  • Penalty math built in
Compliance Manager — FY28–FY32Mode: Annual · S.4(9)
FY28FY29FY30FY31FY32■ BAU■ With-Plan
Surpluses accrue to the passbookdeficits: offset or penalty
Penalty calc — Section 26 detail₹10L + 25K/50K per veh
Pool Builder — up to 3 OEMs (Section 7)manager bears penalty
Block averagingscenario only — not in draft
Drafts: Sept 25 · Feb 26 · Apr 26 scenario · WLTP: user-set

Conceptual workspace view — illustrative trajectory.

6 CREDIT MARKET WATCH

Bank, sell, pool or buy — with the market in view.

Live peer positions and prices — powered by our experts’ supply-and-demand model.

  • See who is long and who is short across 15 OEMs
  • Find pooling partners and credit counterparties
  • Trade tape and the BEE price band in one screen
  • Four-scenario S&D model behind every call
Market Watch — OTCOTC index +4.6% w/w
Best bid / ask
₹3,450 / 3,800
BEE band (coverage)
₹2.5–4.5K
T-2026-012 · BMW India · 55,000 g @ ₹4,350sell · settled
Peer book — 15 OEMs · pools flaggedsurplus / deficit
News — BEE seeks comment on credit pricing bandpolicy
News — Apr 26 draft: SHEV 1.6× circulatedwatch · high impact
BEE direct-sell pricing · passbook mirror pending

Conceptual workspace view — illustrative data.

Every number carries its label

Each forecast figure is tagged with what produced it: FROM THE DRAFT (Section 4(1) Standard, Section 26 penalty schedule), MODEL OUTPUT (per-OEM margin, credit value, pool position), or ASSUMPTION (BEV ramp delivery, WLTP factor, enforcement intensity). No black-box numbers.

Ready to see your OEM's position?

Book a 30-minute discovery call.

TerraNova CAFE helps you manage and report the obligation — a BEE-ready reporting pack straight from your fleet ledger. Actively plan upgrades and model switches and see the live impact on your position. Forecast your 5-year CAFE position over short and long horizons, set the strategy — bank vs sell, pool or buy — and identify the right peer counterparties from market data. All of it powered by a detailed supply-and-demand model built by our experts.

Book Discovery Call →Talk to Our Team
Continue in the India CAFE Series

Part 1 — CAFE Primer  ·  Part 2 — CAFE 2027 Mechanics  ·  Part 6 — The Credit Market

References & Sources

Where each claim comes from

Primary regulatory sources and verified analysis cited above.

  1. BEE Draft CAFE 2027 (25 September 2025) — the primary source for the Standard formula and process the platform mirrors
  2. Climate Decode — TerraNova platform overview (compliance carbon process pattern this article follows)
  3. Climate Decode — Platform overview
  4. Energy Conservation (Amendment) Act 2022 — Section 26 (penalty) and Section 14AA (credit trading)
  5. Climate Decode — Request a Demo
  6. Business Standard (Deepak Patel) — BEE plans to slash super-credits for strong hybrids in CAFE-3 (11 April 2026)

Modelling your CAFE-III position before the rulebook locks in

From per-OEM cost exposure to the 5-year credit-market view, Climate Decode helps Indian passenger-vehicle OEMs sequence the CAFE-III response with finance-grade clarity.

Speak to our Team →Request a Demo