Govt notifies new CAFE-3 norms for passenger vehicles

The Government has notified new Corporate Average Fuel Economy (CAFE-3) norms that will set fuel-efficiency and carbon-emission limits for passenger vehicles from April 1, 2027, to March 31, 2032.

The new norms broadly cover passenger cars, including hatchbacks, sedans, special utility vehicles, and MPVs, with a seating capacity of eight passengers other than the driver.

The new norms will apply to new passenger vehicles manufactured or imported for sale in India, the power ministry said in a statement.

The new norms will provide more choice for consumers in terms of technology, while car manufacturers will have to plan their production accordingly.

In a major shift, the draft CAFE-3 regulations had initially proposed a concession for lightweight petrol cars (under 909 kg) to keep them affordable, the final norms eliminated this benefit. Under the new norms, the revised target line has also been flattened to provide a more balanced, weight-sensitive approach, with relatively softer targets for lighter vehicles and greater fuel-efficiency requirements for heavier vehicles.

The reference weight has been increased from 1,082 kg under existing norms to 1,229 kg under new CAFE norms, an increase of around 13.6 per cent, reflecting the evolving characteristics of the passenger vehicle fleet.  The new norms provide flexibility to manufacturers to adopt cleaner technologies, alternative fuels and other innovative solutions. To encourage cleaner transportation, the new regulations offer “super credits” for Battery Electric Vehicles (BEVs), Range-Extended Electric Vehicles (REEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Strong Hybrid Electric Vehicles (SHEVs) and flex-fuel vehicles, making it easier for manufacturers to meet fleet emissions targets when producing alternative-fuel models. Under the updated regulations, alternative fuels, EVs, and hybrids will benefit from volume derogation multipliers, commonly referred to as “super credits,” when calculating total fleet-average emissions.

“This provides an additional incentive for manufacturers to accelerate the deployment and market penetration of cleaner and advanced vehicle technologies,” the statement said.

Kant Slams New CAFE Norms

New Delhi: New CAFE-3 norms for passenger vehicles, notified by the Ministry of Power, are 'backward-looking at worst', 'status quoist' at best, and lack vision and a clear road map for the future, former NITI Aayog CEO Amitabh Kant said.

Kant said this was an opportunity to technologically leapfrog, like India has done with UPI and smartphones, instead, it is a case of a huge missed opportunity. “The new CAFE norms are backward-looking at worst and status quoist at best. “The regulation follows the industry instead of leading it. #EVs become one option among many, when they should be the destination,” he said.