TL;DR
India has finalized new CAFE-III emissions standards, requiring automakers to improve fleet fuel efficiency by 17% over five years starting in 2027, with EVs counting as three vehicles for compliance.
India has officially notified its Corporate Average Fuel Economy-III (CAFE-III) standards, mandating automakers to begin reducing fleet-level emissions from April 1, 2027, with progressively tighter limits extending through March 2032. These new regulations aim for approximately a 17% improvement in fleet fuel efficiency over a five-year period.
A significant aspect of the CAFE-III framework is the incentive provided for electric vehicles (EVs); each battery-electric vehicle sold will count as three vehicles in the calculation of a carmaker's corporate average. This 'super credit' system is designed to encourage manufacturers to expand their electric and hybrid model offerings, potentially leading to more varied and competitively priced eco-friendly vehicles for consumers.
