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Draft CAFE-III Norms Released

Published on 18 Jul 2026

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Draft CAFE-III Norms Released
  • The Ministry of Power released draft Corporate Average Fuel Economy (CAFE) III norms on July 16, 2026, for M1 passenger vehicles (2027-28 to 2031-32).
  • Targets: 3.996 L/100km (94.76 gCO₂/km) in 2027-28 to 3.3273 L/100km (78.90 gCO₂/km) in 2031-32.
  • Effective from April 1, 2027. Includes credit trading, technology incentives (up to 9 gCO₂/km), and buyout options.
  • Public consultation open till August 6, 2026. Recognizes ethanol & biofuels for compliance.

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