India enforces CAFE III fuel-efficiency standards from April 2027

Automakers must meet tighter CO2 targets or face penalties

Manufacturing Climate Change Pollution
Economic Times ·
Change
India will enforce Corporate Average Fuel Efficiency (CAFE) III standards from April 1, 2027 with stricter emission limits.
Why it matters
The standards impose progressively tighter CO2 targets and allow credit trading mechanisms, requiring manufacturers to adjust product mix and compliance strategies.
Implications
  • — Automakers must meet emission targets — failure triggers financial penalties
  • — Manufacturers must adjust vehicle mix and credits — misalignment risks compliance gaps

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Economic Times
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