Archive · 26 Sep 2025
CAFE-3 Norms: Industry Voices Concerns Over New Rules
India is updating its car fuel efficiency rules with the CAFE-3 norms, starting in 2027.
These new rules measure fuel use in litres per 100 km.
The draft rules classify small cars differently.
Car companies can form groups to meet the rules.
Industry experts are concerned because the rules are confusing and could favor bigger carmakers.
The goal is to make cars more fuel-efficient.
The testing method is changing, which helps car companies meet targets without costly changes.
BEE released draft CAFE-3 norms covering 2027-28 to 2031-32.
The norms classify small cars differently from global standards.
Stakeholders have 21 days to comment on the draft.
Industry veterans find the proposals confusing.
The shift is from CO₂ metrics to litres/100 km under the WLTP protocol.
- Who
- Bureau of Energy Efficiency (BEE)
- What
- Released draft CAFE-3 norms
- When
- September 25, 2025 (draft release)
- Where
- India
- Why
- To improve vehicle fuel efficiency and reduce emissions
Industry Concerns
Government Stance
Clarity and Fairness
Industry Concerns
Industry veterans find the norms confusing and potentially skewed towards larger manufacturers.
Government Stance
The BEE has released the draft and is seeking stakeholder comments.
- Norms Cycle
- 2027-28 to 2031-32
- Small Car Classification
- Separate, deviates from global practices
- Stakeholder Comments Deadline
- Within 21 days from September 25, 2025
- Fuel Consumption Metric
- Litres/100 km
- Testing Procedure
- WLTP (replacing MIDC)
- Pooling
- Up to 3 manufacturers can form a pool
Sources
CAFE-III norms out: Relief for small cars & carmakers
BEE issues draft CAFE 3 norms, with special benefits to small cars
The GST miss: Why India should tax cars based on pollution, not size
New CAFE norms: How the Centre plans to make cars more fuel-efficient from 2027
CAFE-3 draft norms “confusing”, say industry veterans