NEW CORPORATE AVERAGE FUEL ECONOMY (CAFE) NORMS NOTIFIED

The Ministry of Power has notified new Corporate Average Fuel Economy (CAFE) norms for passenger vehicles manufactured or imported for sale in India, effective from 1 April 2027 to 31 March 2032. The framework introduces a tightened fuel-consumption benchmark moving from 3.996 litres/100 km in 2027–28 to 3.3273 litres/100 km in 2031–32, representing an approximate 16.7 percent improvement. The updated norms flatten the target line with a higher reference weight of 1,229 kg and provide flexibility through compliance blocks, credit trading, super credits for electric and hybrid vehicles, and a Carbon Neutrality Factor for alternative fuels like ethanol and biofuels.