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The government has notified new Corporate Average Fuel Economy (CAFE) norms for passenger vehicles, targeting a 16.7 per cent improvement in fuel efficiency over five years as India seeks to promote cleaner technologies, alternative fuels, electric vehicles and hybrids in the automobile sector.
The new norms, notified by the Ministry of Power, will come into effect from April 1, 2027 and remain applicable until March 31, 2032. They will apply to new passenger vehicles manufactured or imported for sale in India, according to a release by the Ministry of Power. Under the new framework, the fuel-consumption benchmark will be tightened progressively every year, 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 per cent over the period. The government has also increased the reference weight used for the norms from 1,082 kg to 1,229 kg, or around 13.6 per cent. The revised target line will provide relatively softer targets for lighter vehicles while placing greater fuel-efficiency requirements on heavier vehicles. The framework is designed to give automobile manufacturers greater flexibility in choosing technologies to meet the targets. It recognises renewable and low-carbon fuels, including ethanol-blended petrol, biofuels and compressed biogas (CBG), through the introduction of a Carbon Neutrality Factor. The list of recognised fuel-conservation technologies has also been expanded from four to 12, with a concession of 1 gram of CO2 per km for each eligible technology, subject to a maximum of 9 grams of CO2 per km. Battery electric vehicles, range-extended electric vehicles, plug-in hybrids, strong hybrids and flex-fuel vehicles will receive volume derogation factors, or super credits, in fleet-average calculations. The move is intended to encourage manufacturers to accelerate deployment of cleaner vehicle technologies. The new framework will also allow manufacturers to meet obligations through specified two-year or three-year compliance blocks. Companies exceeding their targets can carry forward credits, while those with compliance gaps can use eligible credits, trade credits with other manufacturers or purchase credits through a buyout mechanism administered by the Bureau of Energy Efficiency. The ministry said the framework provides greater regulatory clarity, technology choice and flexibility, while supporting the passenger vehicle sector's transition towards greater energy efficiency and lower fuel consumption. (ANI)
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