The Ministry of Power releases draft Corporate Average Fuel Economy 2027 (CAFE-III) norms and invites feedback from stakeholders, ahead of the end of the current CAFE-II framework on March 31, 2027. The draft norms are designed to progressively reduce vehicle emissions and are proposed to replace CAFE-II. According to the ministry, the rules are intended for M1 category passenger vehicles manufactured or imported for sale in India during 2027-28 to 2031-32. M1 passenger vehicles include those with up to eight seats in addition to the driver.
The ministry asks stakeholders and the public to submit suggestions and comments through the mail or by sending them to the under secretary, energy conservation. The deadline for receiving feedback is August 6, 2026. The draft norms are expected to be uploaded on the Ministry of Power and Bureau of Energy Efficiency websites.
One official outline mentioned that the proposal includes tighter fuel-efficiency targets for FY28 to FY32, along with mechanisms such as compliance credits, “super credits” for cleaner vehicles, and incentives for renewable fuels.
