The Ministry of Power has notified the “Corporate Average Fuel Economy” (CAFE)-III norms for passenger vehicles, to be implemented over 5 years from April 2027 to March 2032. The regulations apply to M1 category motor vehicles (carrying 8 to 9 passengers including the driver, excluding commercial vehicles).
The fuel-consumption benchmark will be tightened from 3.996 litres (L) per 100 km in 2027-28 to 3.3273 L per 100 km by 2031-32, aiming for a 16.7% efficiency improvement. The government has increased the reference vehicle weight for calculations from 1,082 kg to 1,229 kg.
The framework introduces “Carbon Neutrality Factors” (CNF) to reduce the declared Carbon Dioxide (CO2) emissions of manufacturers. A reduction of 8% is provided for E20 and higher ethanol-blended petrol vehicles (including hybrids), and 22.3% for Flex-fuel ethanol vehicles.
It is to be noted that a 5% reduction in CO2 emissions is allowed for Compressed Natural Gas (CNG) vehicles or the notified Compressed Biogas (CBG) blending percentage, whichever is higher. The number of efficiency technologies for fuel conservation credits has been increased from 4 to 12.
