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Policy● Neutral for Indian equities
In CAFE 3, auto companies have wider choices and a better view of the road
The brief
- India’s CAFE 3 emission norms are set to reshape automakers’ investment strategies
- Automakers and EV suppliers may need to adjust investment plans as cleaner-technology requirements evolve
- 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 vehicle efficiency norms
CAFE-III takes effect on April 1, 2027, with fleet-wide targets tightening to 78.9 g/km by FY32, a 16.7% reduction. Small cars get no separate relief, while EVs and some hybrids receive compliance credits.
Thursday, 1 October
- In CAFE 3, auto companies have wider choices and a better view of the road