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The Economic Times

Economy / The Economic Times

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Automakers may get to trade fuel-efficiency credits to meet stricter CAFE norms

India is introducing a new system for automakers to trade fuel-efficiency credits. This will help companies meet stricter Corporate Average Fuel Efficiency norms. Manufacturers exceeding targets can sell surplus credits to those falling behind. This market-based approach aims to encourage cleaner vehicle technologies. Electric vehicles will receive more credits than fuel-efficient internal combustion engine cars.

25 Feb 2026 12:56 am