New Delhi, Sept. 30 -- After more than a year of tussle between Maruti Suzuki and rivals such as Tata Motors Passenger Vehicles over relief for small cars, the government has finalized the Corporate Average Fuel Efficiency (Cafe) 3 formula, giving lighter vehicles more emissions headroom.

The final norms, which aim to reduce average emissions from a carmaker's fleet, were notified late on Tuesday night and will apply from 1 April 2027 to 31 March 2032. The notification by the Ministry of Power gives carmakers roughly six months to finalize their plans to meet the requirements.

The government has eased the overall Cafe 3 targets while tilting the relief more towards lighter cars. The targets set for each year allow smaller vehicles more ...