CAFE-III Norms To Boost Fuel Efficiency, Green Cars
The CAFE-III framework does away with a proposed special concession for small petrol cars: Reports
PUNE: India's Ministry of Power on Sept. 29 notified the final Corporate Average Fuel Economy (CAFE)-III framework, setting stricter, progressive fleet-wide fuel-efficiency and carbon-emission targets for passenger vehicles from April 1, 2027, through March 31, 2032.
The new fuel-efficiency rules for passenger vehicles will force carmakers to increasingly manage the efficiency of their entire vehicle portfolio, rather than individual models.
The CAFE-III framework does away with a proposed special concession for small petrol cars, changes the weight-based formula used to set targets and gives electric vehicles the biggest compliance benefit among the different powertrains.
They cover M1 category passenger vehicles such as hatchbacks, sedans and SUVs — manufactured or imported for sale in India and set an average fuel-consumption standard for each carmaker's fleet.
The CAFE norms are aimed at improving the fuel efficiency of cars and reducing their average carbon dioxide emissions.
At the heart of the system is a fleet-wide calculation: a manufacturer’s permitted fuel consumption is determined by the weighted average unladen weight of the vehicles it sells.
This means a carmaker selling a large number of lighter vehicles and one selling predominantly SUVs do not face exactly the same target. The heavier the average fleet, the higher the permitted fuel consumption.
“We welcome the CAFE-III notification for M1 passenger vehicles, which is a comprehensive regulation arrived at after scientific data calculations and detailed stakeholder and inter-ministerial consultation with ambitious targets for energy efficiency improvement and CO2 reduction,” said Rahul Bharti, senior executive officer, Corporate Affairs at Maruti Suzuki.
The regulation recognizes the contribution of multiple powertrain technologies and fuels encouraging multi-faceted R&D and innovation, he noted.
Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles, said the regulation was an important step in advancing India’s journey towards cleaner and more sustainable mobility.
“The continued recognition of zero-emission technologies reinforces the critical role of electrification in achieving India’s long-term decarbonisation objectives,” he pointed out.
The clarity and predictability provided by the framework will enable the industry to plan investments, accelerate innovation and offer customers an increasingly compelling range of cleaner mobility solutions, Chandra said.