India’s Revised Fuel-Efficiency (CAFE) Norms

On 25th September 2025, the Union Ministry of Road Transport and Highways released a revised draft of Corporate Average Fuel Economy (CAFE) norms for passenger vehicles, which will apply for 2027–28 to 2031–32 (Phase III). These norms aim to reduce fuel consumption and cut CO₂ emissions.

What are Corporate Average Fuel Economy (CAFE) norms?

  • CAFE norms are government standards requiring auto manufacturers to maintain a fleet-wide average fuel economy.
  • Introduced by the Bureau of Energy Efficiency (BEE) in 2017.
  • Aim to regulate fuel consumption and CO₂ emissions from passenger vehicles under 3,500 kg.
  • Implemented in two phases: first in 2017-18, second in 2022-23.
  • Applicable ....
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