CAFE Norms 2027-32 Notified, Fuel Use to Fall 16.7 Per Cent

The Ministry of Power has notified a fresh set of Corporate Average Fuel Economy (CAFE) norms for passenger cars. The new rulebook replaces the present one on 1 April 2027 and stays in force till 31 March 2032. It covers cars built inside the country as well as those brought in from abroad and offered for sale here. The norms were settled after long talks with carmakers, industry bodies and academics.

Fuel use has to fall every year

The framework does not fix one flat target for the whole block. Each of the five years carries a tighter number than the year before it. The fleet benchmark for fuel consumption starts at 3.996 litres per 100 km in 2027-28 and is pulled down to 3.3273 litres per 100 km by 2031-32. That amounts to a gain of roughly 16.7 per cent in fuel efficiency across the period.

Heavier cars, stiffer targets

The target line has been flattened so that vehicle weight is treated more evenly. Lighter cars are given somewhat easier targets, while heavier ones have to deliver more efficiency. The reference weight, the weight figure the target curve is drawn around, moves up from 1,082 kg under the existing norms to 1,229 kg, a rise of about 13.6 per cent, because the average car sold in India has grown heavier.

Several routes to compliance

A Carbon Neutrality Factor (CNF) has been brought in so that renewable and low-carbon fuels count towards a maker’s score. Ethanol-blended petrol, other biofuels and compressed bio-gas (CBG) are read through this factor, giving carmakers a path apart from engine efficiency and electrification.

The list of approved fuel-saving technologies grows from four to twelve. Solar reflective paint, advanced glazing and high-efficiency air-conditioning are among those now recognised. Every eligible technology earns a concession of 1 g CO2/km, and the total concession for a maker is capped at 9.0 g CO2/km.

Battery electric, range-extended electric, plug-in hybrid, strong hybrid and flex-fuel models count for extra in the fleet average through volume derogation factors, better known as super credits. A maker who beats the target earns credits, which may be carried forward within two-year or three-year compliance blocks, exchanged with a rival maker, or purchased through a buyout window administered by the Bureau of Energy Efficiency.

Testing and who is left out

Readings will be reported on two cycles at once, the Modified Indian Driving Cycle (MIDC) and the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a step meant to move India towards the testing practice followed worldwide. Makers whose yearly sales stay below 1,000 units remain outside the fleet-average duty, so very small producers are spared the paperwork.