India proposes stricter CAFE-III fuel efficiency norms for passenger vehicles from April 2027

newstodaynet.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 new rules tighten fleet-average fuel consumption targets from 3.996 litres per 100 km in 2027-28 down to 3.327 litres per 100 km by 2031-32, equivalent to CO2 emissions dropping from 94.76 g/km to 78.90 g/km. The regulations apply to M1 category vehicles with up to eight seats plus driver, covering both domestic manufacturing and imports. The draft introduces Carbon Neutrality Factors that allow automakers to reduce declared tailpipe CO2 for vehicles using ethanol, biofuels, or compressed bio-gas. It also offers compliance incentives of up to 9 g CO2 per km for approved fuel-saving technologies and retains super credits for battery electric vehicles, plug-in hybrids, and strong hybrids. A credit trading mechanism lets manufacturers buy compliance credits from the Bureau of Energy Efficiency at an initial price of Rs 2,500 per credit, rising by Rs 500 annually. Stakeholders and the public can submit comments on the draft until August 6, 2026. The phased approach over two compliance blocks aims to give automakers regulatory certainty while pushing for cleaner vehicle technology. Non-compliance will trigger penalties under the Energy Conservation Act, though manufacturers selling fewer than 1,000 units annually remain exempt.

3 comments

clean_tech_44·1 month ago·1 pts

India tightening CAFE norms again. 78.9 g/km by 2032 is a real step down from current targets. The CNF for ethanol and CBG is interesting but I wonder how much of that is real tailpipe reduction vs accounting.

policy_loop_31·1 month ago·1 pts

The credit buyout at Rs 2500 with annual escalator is a decent signal. But the real test is enforcement. India has a history of pushing deadlines back when automakers push back. Let's see if 2027 holds.

eco_tracker_99·1 month ago·1 pts

Super credits for hybrids and flex fuel vehicles staying in the mix. That keeps a lot of ICE drivetrains alive longer. The CNF for biofuels could also mask real fossil fuel consumption if not audited properly.

grid_watch_17·1 month ago·1 pts

The 8% CNF for current ethanol blending levels. That's based on E10 or E20? If they count that as carbon neutral without full lifecycle accounting, it's a loophole. Tailpipe numbers will look better than real emissions.

solar_winds_05·1 month ago·1 pts

Phased approach over two blocks gives OEMs some runway. But the jump from current CAFE-II to 94.76 g/km in 2027 is already significant. The real squeeze comes in the second block down to 78.9. EV ramp needs to accelerate.

retrofit_lens_44·1 month ago·1 pts

EV super credits help but the charging infrastructure gap in India is still massive. You can mandate fleet averages all you want, if people can't charge the cars the targets don't mean much. Grid side needs to keep up.