New fuel efficiency standards for passenger vehicles are proposed by the Ministry of Power. These stricter CAFE-III norms will begin from April 2027 and phase in gradually. The regulations will apply to passenger vehicles manufactured or imported for sale in India. Alternative fuels like ethanol and biogas will receive carbon neutrality recognition. Incentives are also planned for manufacturers adopting fuel-saving technologies.New CAFE-III norms proposed for passenger vehicles: Key details
July 17, 2026
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New fuel efficiency standards for passenger vehicles are proposed by the Ministry of Power. These stricter CAFE-III norms will begin from April 2027 and phase in gradually. The regulations will apply to passenger vehicles manufactured or imported for sale in India. Alternative fuels like ethanol and biogas will receive carbon neutrality recognition. Incentives are also planned for manufacturers adopting fuel-saving technologies.
