Government notifies new CAFE-3 norms for passenger vehicles
The Indian government has announced new CAFE-3 fuel efficiency and emission norms for passenger vehicles effective from 2027 to 2032. The updated regulations remove previous concessions for lightweight cars and introduce 'super credits' to incentivize the production of electric, hybrid, and flex-fuel vehicles.
Why it matters
These regulations will significantly influence automotive manufacturing strategies and consumer vehicle options in India to align with global carbon reduction goals.
The government has notified new Corporate Average Fuel Economy (CAFE-3) norms that will set fuel-efficiency and carbon-emission limits for passenger vehicles from April 1, 2027, to March 31, 2032.
The new norms broadly cover passenger cars, including hatchbacks, sedans, special utility vehicles, and MPVs, with a seating capacity of eight passengers other than the driver.
The new norms will apply to new passenger vehicles manufactured or imported for sale in India, the Power Ministry said in a statement.
The new norms will provide more choice for consumers in terms of technology, while car manufacturers will have to plan their production accordingly.
In a major shift, the draft CAFE-3 regulations had initially proposed a concession for lightweight petrol cars (under 909 kg) to keep them affordable, the final norms eliminated this benefit.
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