Revised CAFE III draft targets passenger vehicles from April 2027

India’s revised CAFE III draft proposes tighter fleet-average fuel-consumption and carbon-dioxide targets for M1 passenger vehicles from April 1, 2027. The proposal is not yet final: it includes a public-comment period and a tightening path through FY2031-32, so the immediate story is about the direction of regulation rather than a confirmed retail-market rule.

Key proposed CAFE III targets

What remains in draft form

The commencement date, annual targets, compliance mechanics and credit provisions must be read as proposed rules until the process is completed. The revised draft reportedly retains compliance-credit trading and opens a 21-day public-comment window.

Why this matters for carmakers and buyers

Fleet-average rules influence the mix of efficient petrol, hybrid, CNG and electric vehicles manufacturers sell. Tighter targets can accelerate powertrain investment and portfolio changes, but the draft alone does not confirm future prices, model cancellations or launch dates. Buyers should watch the final notification and manufacturer product plans.

FAQs

When is CAFE III proposed to begin?

The revised draft proposes April 1, 2027.

Are the targets final?

No. They are part of a revised draft and remain subject to the rule-making process.

Does CAFE apply to one individual car?

CAFE is a manufacturer fleet-average framework, not a single-model mileage promise.

The revised CAFE III draft points to a significantly more efficient passenger-vehicle fleet, but the final obligations will depend on the completed notification.