India’s next CAFE fuel-efficiency rules for automakers

Economic Times
Economic Times 11h India
The government is preparing to circulate a fresh draft of Corporate Average Fuel Efficiency (CAFE) norms and is targeting a final notification by end-February, with indications that current small-car concessions could be removed.
India’s next CAFE fuel-efficiency rules for automakers
Why it matters
If the small-car carve-out is dropped, manufacturers that rely on entry-level models will need to rework product mix, powertrain plans, and compliance pathways ahead of the next-year start date. A February-end notification compresses the window for OEMs to lock FY25–26 model updates, supplier sourcing, and certification testing aligned to the new fleet-average targets. The shift would also change competitive economics by reducing regulatory advantage for small-car-heavy portfolios versus larger-vehicle lineups.
TOPICS

Energy & Power Energy Transition

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