CAFE III Norms (Proposed, 2027–2032)
The proposed CAFE III norms, set to take effect from April 1, 2027 are a part of a 10-year roadmap: 2027–2037, including CAFE IV.
These aim for a CO₂ emission target of 91.7 g/km under the stringent Worldwide Harmonised Light Vehicle Test Procedure (WLTP), compared to a slightly relaxed 92.9 g/km proposed by automakers under the Modified Indian Driving Cycle (MIDC).
The India Energy & Climate Center (IECC) recommends tougher standards and reducing electric vehicle super credits from 4 to 3 under CAFE IV (2032–2037) to account for actual grid emission intensity.
However, automakers, including SIAM, argue that the 91.7 g/km target is overly ambitious, potentially leading to penalties, job losses, and reduced investments, with proposals for separate norms for vehicles under 1,000 kg (favouring companies like Maruti Suzuki) causing industry debate.
These stricter norms are expected to boost electric vehicle adoption, aligning with India’s goal of 30 per cent EV sales by 2030 and enhancing export competitiveness with Euro-7 standards.
Also read: India’s Automakers Resist Strict 2027 Emission Rules