TL;DR
India has dropped fuel-efficiency concessions for small cars under new CAFE-III rules, mandating uniform emission targets across all passenger vehicles from April 2027.
The Indian government has reportedly removed fuel-efficiency concessions previously proposed for small cars under its upcoming Corporate Average Fuel Efficiency (CAFE) III regulations. This move tightens compliance requirements across all passenger vehicles, irrespective of size, and marks a shift from an earlier draft that offered relaxed targets for petrol cars weighing under 909kg and measuring less than four metres.
This revised framework, set to apply from April 2027 for a five-year cycle, aims to uniformly align emission targets across various vehicle categories. It mandates a reduction in average fleet emissions from approximately 114g/km to about 100g/km by 2032. Automakers failing to comply could face penalties of up to $550 per vehicle, pushing manufacturers, especially those with a strong small-car portfolio like Maruti Suzuki, to accelerate efficiency improvements and electrification strategies.
