← Top stories
Policy● Neutral for Indian equities
CAFE-III Norms Notified Not M1 Category Passenger Vehicles: What It Means For Market Players
The brief
- CAFE-III targets are set separately for each financial year across the compliance cycle
- Tighter emissions targets may raise compliance costs for Indian automakers
- CAFE III norms tighten targets, reward small cars and electrified vehicles
- CAFE III norms start in April 2027; battery EVs receive three times the credit
- CAFE 3 fuel efficiency norms notified without carve-out for small cars
- Tata Motors launches Aeris at ₹5.29 lakh, targets 7.5 lakh-plus annual vehicle sales, EVs remain in focus
- Trump admin to roll out lower fuel economy standards for cars, light trucks