Commodities
Home›Commodities›Energy Transition›India proposes tighter vehicle fuel rules under CAFE-I…
India proposes tighter vehicle fuel rules under CAFE-III
The planned standards would start April 1, 2027, and cut fuel consumption targets for M1 passenger vehicles to 3.327 liters per 100 km by 2031 to 2032.
India is proposing stricter fuel efficiency regulations for passenger vehicles under its Corporate Average Fuel Efficiency, or CAFE-III, with the new fuel standards scheduled to take effect April 1, 2027, according to an OilPrice story citing the Ministry of Power.
The proposal is intended to reduce vehicular emissions and help curb dependence on imported crude oil, as India’s oil import bill continues to rise.
The framework would shift testing from the Modified Indian Driving Cycle to the more comprehensive World Light Duty Vehicle Testing Procedure, and it targets M1 vehicles, including hatchbacks, sedans and SUVs up to 3,500 kg, to reduce fuel consumption from 3.996 liters per 100 km in 2027 to 2028 to 3.327 liters per 100 km by 2031 to 2032.
CAFE-III would also tighten carbon targets from 113 g/km to 76 g/km by 2032, with penalties for non-compliance ranging from ?2,500 to ?4,500 per gram of excess CO2 per km. The rules include compliance credits that automakers can sell through a trading system, and it would provide regulatory benefits for alternative-fuel vehicles, including flex-fuel, ethanol-powered cars.
Latest closeWTI crude $79.00 ▼0.8%