Politics · India · 19 hrs ago
India to introduce new passenger-car fuel rules in April 2027
India will introduce new fuel-efficiency rules for passenger cars from April 2027.
The government’s third phase of its CAFE standards will tighten average fuel-use targets for cars sold in the country over five years.
Electric and biofuel cars will receive incentives under the rules.
Automakers that do better than the targets will earn credits they can trade.
The policy is intended to encourage a shift toward lower-carbon transport.
The new standards are due to take effect in April 2027.
India will introduce new fuel-efficiency rules for passenger cars in April 2027.
The rules will give preferential treatment to electric and biofuel vehicles.
Automakers that exceed fuel-efficiency targets will be able to earn and trade credits.
The average fuel-efficiency targets for cars sold in India will become gradually stricter over five years.
- Who
- The Indian government is introducing the rules, which apply to passenger-car manufacturers.
- What
- New fuel-efficiency rules will apply, with preferential treatment for electric and biofuel vehicles and a system for trading credits.
- When
- They start in April 2027 and cover five years.
- Where
- India.
- Why
- To encourage the transition to a decarbonised society.
This story does not have two clearly opposing sides.
India’s Ministry of Power announced the third phase of the CAFE fuel-efficiency rules for manufacturers.
The new passenger-car fuel-efficiency rules are due to begin.
- Start date
- April 2027
- Duration
- Five years
- Regulation
- CAFE, third phase
- Vehicles receiving preferential treatment
- Electric and biofuel vehicles
- Credit system
- Manufacturers exceeding fuel-efficiency targets can earn and trade credits