India has notified new Corporate Average Fuel Economy norms for passenger vehicles, tightening the fuel-consumption benchmark by around 16.7% between 2027-28 and 2031-32 while giving manufacturers wider flexibility to use cleaner technologies and alternative fuels.
New Delhi — India has notified a new Corporate Average Fuel Economy (CAFE) framework for passenger vehicles, setting progressively tighter fuel-efficiency targets from April 1, 2027 to March 31, 2032.
The new norms will replace the existing CAFE framework and apply to new passenger vehicles manufactured or imported for sale in India.
The fuel-consumption benchmark will tighten from 3.996 litres per 100 km in 2027-28 to 3.3273 litres per 100 km in 2031-32, representing an improvement of around 16.7% over the five-year period.
The revised framework also raises the reference vehicle weight from 1,082 kg to 1,229 kg, an increase of around 13.6%.
The target line has been recalibrated to provide a more weight-sensitive approach, with comparatively lower targets for lighter vehicles and stricter fuel-efficiency requirements for heavier vehicles.
Manufacturers will have multiple compliance pathways under the new framework, including adoption of cleaner technologies, alternative fuels and approved fuel-conservation technologies.
The number of recognised fuel-conservation technologies has been expanded from four to 12. Each eligible technology can receive a concession of 1 g COâ‚‚/km, subject to an overall maximum of 9 g COâ‚‚/km.
The norms also introduce a Carbon Neutrality Factor to recognise the role of renewable and low-carbon fuels, including ethanol-blended petrol, biofuels and compressed biogas, in fleet-level CAFE performance.
Battery Electric Vehicles, Range-Extended Electric Vehicles, Plug-in Hybrid Electric Vehicles, Strong Hybrid Electric Vehicles and Flex-Fuel Vehicles will receive volume derogation factors, or super credits, for calculating fleet-average performance.
Manufacturers will also be able to manage compliance through specified two-year and three-year blocks. Companies outperforming their targets can generate credits for carry-forward within the applicable compliance blocks.
Manufacturers facing a compliance shortfall can use eligible carry-forward provisions, exchange or trade credits with other manufacturers, or purchase credits through the Bureau of Energy Efficiency’s buyout mechanism.
The framework will use both the Modified Indian Driving Cycle and the Worldwide Harmonised Light Vehicles Test Procedure for reporting, supporting India’s transition towards globally harmonised vehicle-testing practices.
Manufacturers selling fewer than 1,000 units annually will remain exempt from fleet-average obligations.
The government said the new framework is intended to improve fuel efficiency, promote technological innovation, support alternative and renewable fuels and accelerate the transition towards lower fuel consumption and more sustainable mobility.
