New Delhi: The Centre, along with the Ministry of Power, has briefed on the new Corporate Average Fuel Economy (CAFE-3) norms that set carbon emission limits for passenger vehicles, including hatchbacks, sedans, special utility vehicles, and MPVs, with a seating capacity of eight, other than the driver.
The norms are to be applied from 1 April, 2027 to 31 March 2032. Under these new guidelines, the fuel consumption benchmark will be reduced from 3.996 litres per 100 kilometers in 2027-28 to 3.3273 litres per 100 kilometers. Resulting in an improvement of 16.7% over the next five years.
The new rules will apply to new passenger vehicles manufactured or imported for sale in India.
The new CAFE rules will have the targets tightening year on year throughout the five years, with relatively softer targets for lighter vehicles and greater fuel efficiency for heavier vehicles.
According to the release by the Ministry of Power, the new reference weight will be 1229 kg rather than the current 1082 kg. This is an increase of around 13.6%, signifying the shift in the passenger car segment.
As per the norms, vehicle manufacturers will also receive incentives and compliance pathways that encourage them to produce more efficient vehicles.
The framework also recognizes the use of renewable and low-carbon fuels, including ethanol-blended petrol, compressed biogas, and biofuels, through the introduction of the Carbon Neutral Factor (CNF).
Under the framework, manufacturers can avail a concession of 1g Co2/km for each eligible technology, subject to an overall cap of 9.0 g.