India Notifies CAFE-III Fuel Efficiency Norms Starting April 2027
· Automobile · Indian Express, The Hindu, Economic Times
The Indian government has notified the new Corporate Average Fuel Economy (CAFE)-III norms, which will regulate the fuel efficiency of passenger vehicle fleets from April 1, 2027, through March 31, 2032. Under the new framework, manufacturers will be evaluated based on the average efficiency of their entire portfolio rather than individual car models. The final rules remove a previously proposed concession for small petrol cars and adjust the weight-based formula used to calculate compliance targets. Electric vehicles will receive the highest compliance benefits under the new system, which aims to lower overall CO2 emissions across the automotive sector.
Why it matters
These norms will force carmakers to shift their production strategies toward more fuel-efficient vehicles and EVs to meet fleet-wide targets, directly influencing the types of cars available to Indian consumers.
Read the original report — Indian Express
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