New Delhi, Sept. 30 -- Leading passenger vehicle makers Maruti Suzuki, Tata Motors and Hyundai Motor India welcomed the government's new Corporate Average Fuel Economy (CAFE) III norms, saying the framework gives the industry greater clarity to plan investments while allowing multiple technologies to meet tighter fuel-efficiency targets.

The reactions come as automakers prepare their product strategies for the next regulatory cycle beginning April 1, 2027. The norms, applicable until March 31, 2032, target a 16.7 per cent improvement in passenger vehicle fuel efficiency over five years.

CAFE III is expected to influence how automakers balance investments across electric vehicles, hybrids, alternative fuels and more efficient conventiona...