Government proposes stringent fuel efficiency standards for passenger vehicles

Representational Image. File pic.

The Ministry of Power on Thursday issued the draft Corporate Average Fuel Economy 2027 (CAFE-III) norms for stakeholder consultation, proposing a new five-year fuel efficiency regime for passenger vehicles beginning on April 1, 2027.

The new norms, which aim to progressively reduce vehicle emissions, will replace the existing CAFE-II norms that are likely to lapse on March 31, 2027.

Which categories?

The draft norms apply to M1 category vehicles (passenger cars carrying up to eight people besides the driver, which includes all hatchbacks, sedans and SUVs) manufactured or imported for sale in India. The M1 category excludes commercial goods carriers and buses.

M1 vehicles are required to meet stringent fuel efficiency and emission standards under CAFE norms, which are periodically updated to reduce greenhouse gas emissions.

Compliance under CAFE-III will be assessed across five years in two phases, with the first phase spanning three years, and fuel efficiency targets becoming progressively more stringent each year.

The fuel consumption targets are proposed to be progressively tightened, from 3.996 litres/100 km (94.76 gCO₂/km) in 2027-28 to 3.3273 litres/100 km (78.90 gCO₂/km) in 2031-32, according to a PTI report. Manufacturers will be eligible to claim up to 9 gCO₂/km of compliance benefit for approved fuel-saving technologies, subject to a maximum benefit of 1 gCO₂/km per technology, it added.

Carbon-neutrality of ethanol blended vehicles

When CAFE III norms come into effect, it will recognise the carbon-neutrality of ethanol, bio-fuel and compressed bio-gas (CBG) for the first time, by permitting specified reductions in declared tailpipe carbon dioxide emissions before compliance assessment, it stated.

For the current ethanol blending levels, an 8 per cent carbon neutrality factor (CNF) shall be considered, while for CBG and bio-fuel, the reduction shall be based on the prevailing actual blending level, it added.

Stakeholders and the public can mail their suggestions and feedback or send them to the under secretary, energy conservation by August 6, 2026.

The framework, overseen by the Bureau of Energy Efficiency under the Ministry of Power, aims to bring down average fleet emissions from current levels to a significantly lower threshold by financial year 2031-32, as per IANS.

(With Agency Inputs)