CAFE III fuel efficiency norms notified for cars: 3x credit for battery EVs, no special benefit for small cars
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Indian government notified the third phase of Corporate Average Fuel Economy (CAFE-3) norms for passenger vehicles starting April 1, 2027.
- ✓These rules remain in force until March 31, 2032.
- ✓Battery electric vehicles will count as three vehicles for fleet averages, while carmakers must report CO2 emissions and fuel consumption annually.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Economic Times
- Reading Speed
- 7 Minute(s)
- Market Focus
- India Economy
The Indian government has announced Corporate Average Fuel Economy norms for passenger vehicles effective from April 2027. These standards include fuel consumption calculations based on various vehicle types, including electric and hybrid models. Manufacturers must report CO2 emissions and actual fuel consumption annually to ensure compliance. A system of credits and debits will be established for vehicle manufacturers based on their compliance levels.
The Centre has notified the third phase of Corporate Average Fuel Economy (CAFE-3) norms for passenger vehicles for the five years beginning April 1, 2027. Battery electric vehicles will count as three vehicles when a carmaker's fleet average is calculated.
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Economic Times
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