CAFE-III norms:
The Indian government and the automobile industry reached a broad consensus on the upcoming CAFE-III (Corporate Average Fuel Efficiency Phase III).
- CAFE (Corporate Average Fuel Efficiency) norms are government-mandated standards that regulate the weighted average fuel consumption and CO₂ emissions of an automaker’s entire fleet, rather than individual models.
- Established By: The Bureau of Energy Efficiency (BEE) under the Ministry of Power.
- These norms apply to M1 category passenger vehicles (those designed to seat up to nine persons and weighing under 3,500kg).
- The third phase (CAFE-III) is scheduled to be implemented from April 1, 2027, and will run through March 31, 2032.
- Aim of CAFE-III:
- To reduce India’s heavy reliance on crude oil imports, especially critical during geopolitical uncertainties like the West Asia crisis.
- To nudge manufacturers toward producing energy-efficient and less-polluting vehicles in line with India’s climate goals.
- To force the adoption of advanced technologies such as hybrids, electric vehicles (EVs), and flex-fuel systems.
