Archive · 29 Sep 2025
India's New CAFE Norms to Impact Car Efficiency
Imagine India wants cars to use less fuel and pollute less.
They have rules called CAFE norms.
The new rules, called CAFE 3, get stricter.
Cars will need to use less gas and release fewer emissions.
Small cars get a little help but still need to improve.
The rules also reward cars that use electricity, hybrid engines or alternative fuels like ethanol.
Automakers can now team up to meet the goals.
The goal is to help the environment.
India introduced CAFE norms to reduce pollution from cars.
CAFE 3 aims to further reduce fuel consumption and emissions.
Small cars can claim an extra CO2 reduction, capped at 9.0 gm/km.
Electric and hybrid vehicles are incentivized via 'super credits'.
Emission pooling allows manufacturers to combine emissions for compliance.
- Who
- Bureau of Energy Efficiency (BEE)
- What
- Announced draft CAFE 3 norms to tighten fuel consumption standards for vehicles.
- When
- Announced last week; norms to be implemented from FY28 to FY32.
- Where
- India.
- Why
- To reduce carbon emissions and promote cleaner technologies.
Critics
Automakers
Emissions Pooling
Critics
Could allow polluting firms to avoid real technological progress.
Automakers
Aims to foster collaboration, particularly between legacy automakers and EV-focused players.
Year-on-Year Changes
Critics
N/A
Automakers
Year-on-year changes make product planning and compliance difficult.
- CAFE Norms Purpose
- Reduce fossil fuel dependence and air pollution.
- Applicable Vehicles
- M1 category vehicles (passenger cars).
- First Phase Fuel Consumption
- 5.5 litres/100 km and <130 gm CO2/km.
- Second Phase Fuel Consumption
- 4.78 litres/100 km and <113 gm CO2/km.
- CAFE 3 Fuel Consumption (FY28-FY32)
- 3.7264 to 3.0139 litres/100 km and below 91.7 gm CO2/km.
- Small Car Benefit
- Extra 3.0 gm CO2/km reduction, capped at 9.0 gm/km.