New Delhi, 30 September (H.S.): The Central Government has notified new Corporate Average Fuel Economy (CAFE) standards for passenger vehicles. The new norms, which will come into force from April 1, 2027, will remain in effect until March 31, 2032, with the objective of improving the fuel efficiency of cars by 16.7 per cent over the five-year period.

According to the Ministry of Power, the new CAFE standards will apply to new passenger vehicles manufactured or imported for sale in India. Under the revised framework, the fuel-consumption standard will be reduced from 3.996 litres per 100 kilometres in 2027-28 to 3.3273 litres per 100 kilometres by 2031-32.

The ministry said the new framework will encourage vehicle manufacturers to adopt cleaner technologies, alternative fuels and innovation. Specific provisions have been incorporated to promote electric vehicles, hybrid vehicles, flex-fuel vehicles and other advanced technologies.

The new standards will also provide incentives for greater use of lower-carbon fuels, including ethanol-blended petrol, biofuels and compressed biogas. A carbon-neutrality factor has been introduced to enable manufacturers to account for the use of such fuels in their overall compliance performance.

The government has also expanded the list of recognised fuel-saving technologies from four to 12. These include solar-radiation-reflective paints, advanced glazing systems, high-efficiency air-conditioning systems and other energy-saving technologies. Eligible technologies will receive specified concessions in emissions calculations.

A super-credit mechanism will provide additional incentives for battery-electric vehicles, range-extended electric vehicles, plug-in hybrids, strong hybrids and flex-fuel vehicles. The mechanism is intended to encourage manufacturers to increase the sale of vehicles equipped with cleaner and advanced technologies.

According to the ministry, the new standards also provide greater flexibility to the automotive industry. Manufacturers that perform better than the prescribed targets will earn credits, which can be carried forward for future use or traded with other manufacturers. Where required, manufacturers will also have the option of purchasing credits through the Bureau of Energy Efficiency (BEE).

Reporting under the new CAFE standards will be based on both the Modified Indian Driving Cycle (MIDC) and the globally used Worldwide Harmonized Light Vehicles Test Procedure (WLTP). The framework is intended to help align India’s vehicle testing practices more closely with international testing standards.

The government said vehicle manufacturers with annual production or import volumes of fewer than 1,000 units will be exempt from the prescribed fleet-average obligations under the new standards. The official CAFE framework defines a small-volume manufacturer as one whose manufactured or imported volume is below 1,000 units during a reporting period.

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Hindusthan Samachar / Jun Sarkar