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Corporate Average Fuel Efficiency (CAFE) Norms

Corporate Average Fuel Efficiency (CAFE) Norms:

India has proposed to significantly revamp its key vehicle emissions rules, called the Corporate Average Fuel Efficiency (CAFE) norms, and has introduced a draft of the third iteration of the key standards.

  • Corporate Average Fuel Efficiency (CAFE) norms are government-mandated standards that require auto manufacturers to meet a fleet-wide average fuel economy target.
  • These are introduced by the Bureau of Energy Efficiency (BEE) in 2017, and aim to regulate fuel consumption and CO₂ emissions from passenger vehicles under 3,500 kg.
  • In India, CAFE norms were introduced in two phases, with the first stage effective from 2017-18 and the second from 2022-23.
  • These norms apply to vehicles powered by petrol, diesel, LPG, CNG, hybrids, and electric power.
  • Objective: CAFE norms were designed to:
    • Reduce oil imports
    • Cut air pollution
    • Promote cleaner vehicles like EVs, CNG cars, and hybrids.