Indian automakers are resisting the government’s proposed Corporate Average Fuel Efficiency (CAFE) III norms, set to take effect from April 2027. These norms demand a one-third reduction in car emissions to 91.7g/km of CO2 under the Worldwide Harmonised Light Vehicles Test Procedure (WLTP).
The Society of Indian Automobile Manufacturers (SIAM) argues that this target, a big leap from the current CAFE II limit of 113.1g/km, is overly ambitious and threatens the ₹11.44 lakh crore auto industry’s sustainability.