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CAFE 3 explained: What India's new fuel-efficiency rules mean for carmakers and buyers
The brief
- CAFE 3 tightens fuel-efficiency targets from 2027, with compliance options including EVs, hybrids, cleaner fuels and credits
- Tighter standards may accelerate EV and hybrid investment among Indian automakers
- New CAFE-3 framework provides technology flexibility, say automobile manufacturers
- CAFE-3 wins industry backing, but Kant flags weak EV push as missed opportunity
- CAFE 3 norms: Maruti Suzuki, Hyundai, Tata Motors, M&M, Mercedes-Benz, others welcome new rules; ethanol gets boost
- Why Maruti Suzuki’s Rahul Bharti believes it will continue its leadership in CAFE-III
- CAFE-3 drops small-car sop, raises pressure on heavier fleets
India’s CAFE-III fuel-efficiency norms
CAFE-III norms take effect in April 2027 and tighten the passenger-vehicle CO₂ target by 16.7% to 78.9 g/km by FY32, without separate small-car relief. Battery and range-extended EVs receive a threefold volume multiplier; plug-in hybrids receive 2.5 times.
Wednesday, 30 September
- CAFE 3 explained: What India's new fuel-efficiency rules mean for carmakers and buyers