← Top stories
Policy● Neutral for Indian equities
Government notifies new CAFE-3 norms for passenger vehicles
The brief
- New norms apply to passenger vehicles manufactured or imported for sale in India
- Indian automakers may face compliance changes under the new vehicle norms
India’s CAFE III fuel-efficiency norms
CAFE III norms for passenger vehicles take effect in April 2027 and tighten the CO₂ target by 16.7% to 78.9 g/km by FY32. Small cars receive no separate carve-out, while battery and range-extended EVs get a 3.0 compliance multiplier and plug-in hybrids 2.5.
Wednesday, 30 September
- Government notifies new CAFE-3 norms for passenger vehicles