TL;DR
Indian automakers have agreed to new CAFE III fuel efficiency norms set to begin in April 2027, aiming to reduce CO2 emissions for passenger vehicles.
Indian car manufacturers have collectively agreed to the proposed CAFE III (Corporate Average Fuel Economy) regulations, which are slated to come into effect from April 1, 2027. These new norms aim to significantly limit CO2 emissions for passenger vehicles across the country. The Society of Indian Automobile Manufacturers (SIAM) has indicated that the industry body finds the guidelines well-balanced and achievable.
Under the new framework, automakers will be required to demonstrate continuous improvements in their fleet emissions annually until the fiscal year 2031-32. This consensus among manufacturers and the industry body suggests a proactive approach towards environmental sustainability within India's automotive sector. The government is expected to release the final notification for these regulations shortly, formalizing the industry's commitment to reduced carbon footprints.
