India, Sept. 30 -- The Government of India has notified the new Corporate Average Fuel Economy (CAFE) norms for passenger vehicles, replacing the existing framework from April 1, 2027. The norms will remain applicable until March 31, 2032, covering new passenger vehicles manufactured or imported for sale in India. The Ministry of Power had earlier circulated the draft CAFE-III norms for stakeholder consultation in July 2026.

The new framework will progressively tighten fleet-average fuel-efficiency requirements each year. The fuel-consumption benchmark will move 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%. The revised target line also adopts a more weight-se...