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The Economic Times

Business

CAFE III fuel efficiency norms notified for cars: 3x credit for battery EVs, no special benefit for small cars

Bee Gazette Fuel Efficiency MoRTH Economy India the ministry of petroleum and natural gas

The Centre has notified the third phase of Corporate Average Fuel Economy (CAFE-3) norms for passenger vehicles for the five years beginning April 1, 2027. Battery electric vehicles will count as three vehicles when a carmaker's fleet average is calculated.

The norms apply to M1 category motor vehicles as specified under the Central Motor Vehicle Rules, 1989, and remain in force from April 1, 2027 to March 31, 2032.

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