NEW DELHI: Carmakers may soon have a new way to meet India's fuel efficiency norms without relying solely on electrification, with the Centre proposing to reward a range of fuel-saving technologies under the draft Corporate Average Fuel Economy (CAFE)-III regulations.

New fuel economy standards for passenger vehicles are proposed by the Ministry of Power. These Corporate Average Fuel Economy-III norms will apply from 2027-28 to 2031-32.…

Govt unveils draft CAFE III norms to reduce vehicle emissions and seeks stakeholder feedback by August 6, 2026.