New CAFE-III norms proposed for passenger vehicles: Key details
The Ministry of Power proposed CAFE-III norms for passenger vehicles, replacing CAFE-II from April 1, 2027.
Fuel consumption targets tighten from 3.996 L/100 km (FY2027-28) to 3.3273 L/100 km (FY2031-32).
Compliance is assessed in two blocks: three years, then two years.
Alternative fuels like ethanol and compressed bio-gas receive carbon neutrality recognition for the first time.
Manufacturers can claim up to 9 gCO₂/km compliance benefits for fuel-saving technologies, capped at 1 gCO₂/km per technology.
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