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Home / Business and Economy / India's CAFE 3: Stricter Fuel Norms by 2027

India's CAFE 3: Stricter Fuel Norms by 2027

12 Jan

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Summary

New CAFE 3 norms will target passenger vehicle fuel consumption and emissions.
Proposed rules offer relief for small petrol cars and incentives for EVs.
Final notification for CAFE 3 standards is awaited by the auto industry.

India's CAFE 3: Stricter Fuel Norms by 2027

The Indian automotive industry is anticipating the final release of the Corporate Average Fuel Efficiency (CAFE 3) standards, a crucial step for manufacturers to prepare for upcoming regulations. These proposed norms, intended to govern passenger vehicle fuel consumption and carbon emissions from April 2027 to March 2032, were introduced in draft form last September. The Bureau of Energy Efficiency is currently considering feedback from stakeholders.

The CAFE 3 framework aims to implement stricter fleet-wide fuel efficiency targets. Notably, it includes provisions for specific relief measures tailored for small petrol cars. Simultaneously, the proposed standards are designed to provide robust incentives for the uptake of electric and hybrid vehicles, aligning with national objectives for energy substitution and reducing carbon footprints.