India has notified CAFE-3, the next phase of Corporate Average Fuel Economy standards for passenger vehicles. The rules take effect April 1, 2027 and run through March 31, 2032. The fuel consumption benchmark tightens from 3.996 liters per 100 km in 2027-28 to 3.3273 liters per 100 km by 2031-32, roughly a 16.7% improvement over five years. Manufacturers must report CO2 emissions and actual fuel consumption annually, with a credit and debit system to track compliance. The reference weight for testing rises 13.6% to 1,229 kg, which accounts for heavier vehicles in the market. The rules include concessions for cleaner fuels and technologies, up to 9 g CO2/km total, and carbon neutrality factors for ethanol blended petrol and flex fuel models. These details matter for automakers planning product cycles and for buyers comparing efficiency across segments.
