ArdorComm Media News Network
October 1, 2026
The government has notified a new set of Corporate Average Fuel Economy (CAFE) norms for passenger vehicles, replacing the existing regulations from April 1, 2027. The new framework will remain in force until March 31, 2032 and will cover passenger vehicles manufactured or imported for sale in India.
The revised norms are aimed at providing greater regulatory certainty to the automobile industry while encouraging investments in fuel-efficient technologies and supporting India’s transition towards lower fuel consumption.
Under the new framework, fuel-efficiency targets will become progressively stricter each year. The benchmark will tighten from 3.9 litres per 100 km in 2027-28 to 3.32 litres per 100 km by 2031-32, amounting to an improvement of more than 16% over the five-year period.
The revised target structure also adopts a flatter, weight-sensitive approach. Lighter vehicles will face relatively less stringent targets, while heavier vehicles will be required to achieve greater improvements in fuel efficiency.
The government said manufacturers will have flexibility to meet the targets through cleaner technologies, alternative fuels and other innovative solutions. The framework also encourages the adoption of technologies such as solar-reflective paints, advanced glazing and high-efficiency air-conditioning systems to improve vehicle efficiency.
The new CAFE norms are expected to encourage technological innovation while contributing to India’s broader objectives of energy security, reduced fuel consumption and environmental sustainability.
Source: News on AIR