The government has released the draft CAFE-III norms, proposing stricter fuel efficiency targets for passenger vehicles from April 2027. For the first time, ethanol and biofuel cars get special recognition through Carbon Neutrality Factors (CNFs), allowing manufacturers to claim lower emissions. This is a key policy shift aligning fuel efficiency with India's renewable fuel push.
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- ›Target (2027-28): 3.996 L/100 km (94.76 gCO₂/km)
- ›Target (2031-32): 3.327 L/100 km (78.90 gCO₂/km)
- ›Target this Data: CAFE-III targets: 3.996 L/100km (2027-28) to 3.327 L/100km (2031-32); 8 percentage point CNF reduction for ethanol.
- ›Target this Nodal Body: Ministry of Road Transport and Highways (MoRTH) / Ministry of Heavy Industries (for policy framework).
- ›Target this Legal Point: CAFE norms are part of India's Motor Vehicles Act framework and linked to Bharat Stage (BS) emission norms.
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