- India
- Oct 01
Centre notifies new Corporate Average Fuel Economy (CAFE) norms
• The Ministry of Power notified tighter fuel-efficiency CAFE-III norms for passenger vehicles.
• The new Corporate Average Fuel Economy (CAFE) norms will come into effect from April 1, 2027 and remain in force through March 31, 2032.
What are Corporate Average Fuel Economy (CAFE) norms?
• India’s dependence on imported fossil fuels is rising continuously due to the limited domestic petroleum resources.
• India is ranked as the third-largest petroleum consumer in the world following the United States and China.
• The Ministry of Power, in consultation with the Bureau of Energy Efficiency (BEE), notified average fuel consumption standards for passenger cars in 2015 to mitigate fuel consumption by lowering CO2 emissions.
• It aims to reduce oil dependency and air pollution.
• These norms are applicable for petrol, diesel, liquefied petroleum gas (LPG), CNG, hybrid, and electric passenger vehicles.
• The first phase of the fuel consumption standards was effective from 2017-18 to 2021-22, and a second set of standards are implemented from April 2022.
• The standard relates to the Corporate Average Fuel Consumption (in litres/100 kms) to the Corporate Average Curb Weight of all the cars sold by a manufacturer in a fiscal year.
• In the first phase, the average weight of all the manufacturers was considered to be 1,037 kgs, and the Average Fuel Consumption was marked less than 5.49 litres/100 kms.
• In the second set of standards, the car average weight is considered to be 1,082 kgs in 2022.
• The Corporate Average Fuel Consumption is estimated by averaging the standard fuel consumption of all vehicles sold each year.
• This fuel consumption is measured under standard conditions in nationally accredited labs.
• There is a limit set on the total emission of CO2 emitted, as the amount of CO2 a car emits has a direct correlation with the amount of fuel it consumes.
Highlights of CAFE-III norms:
• The new CAFE norms will apply to new passenger vehicles manufactured or imported for sale in India for the period from April 1, 2027 to March 31, 2032.
• The revised target line has been flattened to provide a more balanced, weight sensitive approach, with relatively softer targets for lighter vehicles and greater fuel efficiency requirements for heavier vehicles.
• The reference weight has been increased from 1,082 kg under existing norms to 1,229 kg under new CAFE norms, an increase of around 13.6 per cent, reflecting the evolving characteristics of the passenger vehicle fleet.
• The new norms provide flexibility to manufacturers to adopt cleaner technologies, alternative fuels and other innovative solutions.
• The new CAFE framework promotes technological innovation in new technologies such as solar reflective paints, advanced glazing, high efficiency air-conditioning for improved fuel efficiency and India’s energy security and sustainability objectives.
• The passenger vehicle segment accounts for a substantial share of India’s transport energy demand and remains an important contributor to fossil-fuel consumption.
• The new CAFE framework supports rapid technological advancements, increasing availability of alternative and renewable fuels, growing electrification and evolving global automotive technologies.