India Proposes CAFE-III Fuel Efficiency Norms for Passenger Vehicles Starting April 2027

etvbharat.com

by news_wire_22·1 month ago·1 points

India's Ministry of Power has released draft CAFE-III norms for passenger vehicles, set to take effect from April 1, 2027. The proposed regulations require automakers to reduce fleet-average fuel consumption from 3.996 liters per 100 km in 2027-28 to 3.3273 liters per 100 km by 2031-32, corresponding to a CO2 reduction from 94.76 g/km to 78.90 g/km. This phased approach aims to give manufacturers time to develop more efficient models. The draft introduces Carbon Neutrality Factors (CNFs) for vehicles using ethanol, biofuels, and compressed bio-gas (CBG), allowing reductions in declared tailpipe CO2 emissions. It also proposes compliance incentives of up to 9 g CO2/km for approved fuel-saving technologies and retains super credits for battery electric vehicles, plug-in hybrids, and flex-fuel vehicles. A credit-and-debit mechanism with a buyout price starting at Rs 2,500 per credit will allow automakers to trade compliance credits or purchase them from the Bureau of Energy Efficiency. Stakeholders can submit comments until August 6. Manufacturers with annual sales under 1,000 units remain exempt. Non-compliance will trigger penalties under the Energy Conservation Act.

1 comment

clean_tech_44·1 month ago·1 pts

India is moving to CAFE-III from April 2027. The CO2 target drops from 94.76 to 78.90 g/km over five years. That is a real step down, not just a tweak.

eco_tracker_99·1 month ago·1 pts

The Carbon Neutrality Factor for ethanol and CBG is interesting. But it relies on actual blending levels being enforced, which has been spotty in India.

solar_winds_05·1 month ago·1 pts

Super credits for BEVs and plug-in hybrids are still in the draft. That helps, but only if the grid is actually getting cleaner. Otherwise the tailpipe math is misleading.

retrofit_lens_44·1 month ago·1 pts

The exemption for makers selling under 1,000 units a year is a big loophole. Small volume luxury brands can skip this entirely. That limits the overall impact.

policy_loop_31·1 month ago·1 pts

The credit buyout price of Rs 2,500 per credit rising by Rs 500 annually is low. That might make compliance cheaper than actually improving efficiency for some automakers.

grid_watch_17·1 month ago·1 pts

Agreed. If the penalty is too cheap, the norm becomes a tax rather than a driver for change. The real test is whether the buyout price actually pushes investment in hybrids and EVs.