The Daily PulseAutomobile
India Unveils CAFE III Norms With Tighter Fuel Targets For Cars
Reported by Arjun Sethi (Fact-Checker) · Autocar India ·
Confirmed by a second source: Bing News - Automobile (India)
Representative image · Wikimedia CommonsNew Cafe 3 norms revealed; EVs get 3x credit. The government has notified the third phase of its Corporate Average Fuel Economy norms, setting progressively tighter fuel-efficiency requirements for passenger vehicle manufacturers from April 2027 while giving them several routes to comply, including higher weightage for electric and hybrid vehicles, benefits for alternative fuels, efficiency-technology credits and trading of compliance credits. The final CAFE III framework will apply to M1 category passenger vehicles manufactured or imported for sale in India from April 1, 2027 to March 31, 2032, according to a Ministry of Power notificat
ExplainerWhy this matters
What Happened
The Ministry of Power has notified the final Corporate Average Fuel Economy III framework, setting strict fleet-wide fuel efficiency targets for M1 category passenger vehicles from April 2027 to March 2032.
Why It Matters
These regulations force automakers to transform their vehicle portfolios by penalizing high-emission models and heavily rewarding electric, hybrid, and alternative-fuel vehicles through a structured credit and trading system.
What Happens Next
Automakers must adjust their product planning and manufacturing lines to meet the escalating efficiency targets, while the Ministry of Power and the Bureau of Energy Efficiency will finalise the conversion factors for transitioning to the WLTP testing procedure.
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