The Economic Times

CAFE III fuel efficiency norms notified for cars: 3x credit for battery EVs, no special benefit for small cars

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.