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India issues final CAFE-III norms for passenger cars 2027–2032

By Drooid · Sep 30, 2026, 11:00 AM UTC · How we work

Summary

Story summary

India’s Ministry of Power issued final CAFE-III fuel-efficiency norms for passenger vehicles.
The norms apply to M1-category cars sold from 1 April 2027 through 31 March 2032.
Reference weight is 1,229 kg and multiplier falls from 0.00158 in FY28 to 0.00131 in FY32.
Credits start at Rs 2,500 per g CO2/km in FY28 and rise to Rs 4,500 by FY32.
Manufacturers must report each model’s MIDC and WLTP fuel use and file state-wise sales annually.

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Story summary

India’s Ministry of Power issued final CAFE-III fuel-efficiency norms for passenger vehicles.
The norms apply to M1-category cars sold from 1 April 2027 through 31 March 2032.
Reference weight is 1,229 kg and multiplier falls from 0.00158 in FY28 to 0.00131 in FY32.
Credits start at Rs 2,500 per g CO2/km in FY28 and rise to Rs 4,500 by FY32.
Manufacturers must report each model’s MIDC and WLTP fuel use and file state-wise sales annually.