India's draft CAFE-III norms: stricter fuel efficiency and carbon emission rules for cars from April 2027

India's Ministry of Power has released draft CAFE-III norms, proposing tighter fuel efficiency and carbon emission standards for passenger vehicles starting April 1, 2027. The rules apply to M1 category vehicles like hatchbacks, sedans, and SUVs, but exclude commercial vehicles. The draft includes incentives such as Carbon Neutrality Factors, super credits, and compliance credits to push adoption of cleaner technologies. Stakeholders can submit feedback until August 6, 2026, after which the government will finalize the norms. This is a significant step for India's transport decarbonization, as passenger vehicles account for a growing share of emissions. The effectiveness will depend on enforcement and how automakers respond to the new targets.