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India proposes stricter fuel efficiency rules for cars from 2027
The new norms will be applicable from 2027

India proposes stricter fuel efficiency rules for cars from 2027

Jul 16, 2026
02:36 pm

What's the story

The Ministry of Power has proposed new fuel economy standards for passenger vehicles in India. The proposed Corporate Average Fuel Economy-III (CAFE-III) norms will be applicable from 2027-28 to 2031-32. Under these rules, car manufacturers will have to meet fleet-wide fuel efficiency targets across all the passenger vehicles they sell. The main objective is to improve fuel efficiency and reduce emissions from India's passenger vehicle fleet.

Goals

Proposed CAFE-III norms explained

The proposed CAFE-III norms are aimed at improving the overall fuel efficiency of passenger vehicles in India.

By setting fleet-wide targets, the government hopes to encourage car manufacturers to develop more efficient and less polluting vehicles.

This move is part of a larger effort to reduce carbon emissions and combat climate change by making India's transportation sector more sustainable.

Public feedback

Feedback invited until August 6

The Ministry of Power has invited comments and suggestions from automakers, industry stakeholders, and the public on the draft CAFE-III norms.

Feedback can be submitted to the Under Secretary (Energy Conservation) at the Ministry of Power or via email at saket-upsc@gov.in until August 6, 2026.

The draft norms will also be available on the websites of both the Ministry of Power and Bureau of Energy Efficiency (BEE).

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