Centre floats another draft of CAFE-III; gives special recognition to ethanol and bio fuel cars
The Indian government has released draft CAFE-III norms proposing stricter fuel efficiency and carbon emission standards for vehicles starting in 2027. The proposal introduces Carbon Neutrality Factors to incentivize the use of ethanol and biofuels in passenger cars.
Why it matters
These regulations aim to significantly reduce the carbon footprint of the automotive sector, forcing manufacturers to accelerate the adoption of cleaner fuel technologies.
The Centre has released the draft Corporate Average Fuel Efficiency (CAFE)-III norms for stakeholder consultation, proposing tighter fuel efficiency and carbon emission standards for passenger vehicles from April 1, 2027. For the first time, the draft also proposes special recognition for ethanol and other biofuels while assessing manufacturers’ compliance by allowing manufacturers to claim lower than actual tailpipe emissions.
The article reports on government policy and industry reactions in a factual, neutral manner without taking a stance.
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