New Delhi, July 12 -- Hero MotoCorp Ltd has become the first two-wheeler maker to flag the government's proposed corporate average fuel efficiency (CAFE) norms for motorcycles and scooters as an "emerging risk" to business, warning that tougher fuel-efficiency rules could raise costs in India's highly price-sensitive market.

The disclosure in the company's FY26 annual report comes as the government prepares to roll out fleet-wide fuel-efficiency targets for India's two-wheelers, world's largest market for the segment, from April 2028.

The country's largest two-wheeler maker said it plans to mitigate the impact of the proposed fuel-efficiency norms by increasing the use of lightweight components, improving vehicle efficiency and expandin...