Why in News?
The Union Ministry of Power has notified the new Corporate Average Fuel Economy (CAFE-III) Norms for passenger vehicles. The norms will come into effect from 1 April 2027 and remain applicable until 31 March 2032. They will apply to new passenger vehicles manufactured or imported for sale in India and aim to progressively improve fuel efficiency and reduce carbon emissions.
About CAFE-III Norms
The new CAFE framework will progressively tighten fuel-consumption targets every year. The benchmark will become stricter 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% over the five-year period.
The framework provides manufacturers flexibility to adopt cleaner technologies, alternative fuels and innovative solutions. It recognises the contribution of renewable and low-carbon fuels, including ethanol-blended petrol, biofuels and Compressed Biogas (CBG), through the introduction of the Carbon Neutrality Factor (CNF).
The number of recognised fuel-conservation technologies has been expanded from four to twelve. Battery Electric Vehicles (BEVs), Range-Extended Electric Vehicles (REEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Strong Hybrid Electric Vehicles (SHEVs) and Flex-Fuel Vehicles will receive volume derogation factors or “super credits” in fleet-average calculations.
CLICK HERE: UPSC PRELIMS & MAINS CURRENT AFFAIRS BASED WEEKLY TEST (ENG & HINDI)
CLICK HERE FOR GS TIMES PRAHAR UPSC GS MAINS TEST SERIES
CLICK HERE: DAILY CURRENT AFFAIRS QUIZ (FOR ALL EXAMINATIONS)
![](https://www.gstimes.in/wp-content/uploads/2026/07/WEEKLY-TEST-RECT.jpg")
