Public Asked to Comment on New 2027 Fuel‑Economy Standards for M1 Vehicles

The Ministry of Power in New Delhi has circulated a draft of the Corporate Average Fuel Efficiency (CAFE‑III) standards covering the fiscal years 2027‑28 through 2031‑32. The draft focuses on M1 class passenger cars – hatchbacks, sedans and SUVs – that can accommodate up to eight occupants besides the driver. Commercial trucks and buses are not covered. The current CAFE‑II norms are slated to end on 31 March 2027, paving the way for the new regime. The compliance mechanism is split into a three‑year first phase and a two‑year second phase, with progressively stricter fuel‑efficiency benchmarks each year. Oversight will be provided by the Bureau of Energy Efficiency, with the goal of markedly lowering average fleet emissions by FY 2032. Credits will be priced at ₹2,500 each, rising by ₹500 annually; any unused credits will lapse after the compliance window. Manufacturers selling fewer than 1,000 units per year will be exempt. While the Society of Indian Automobile Manufacturers called the proposal balanced, some makers demanded relief for small petrol cars and opposed a separate rule set for this category. Suggestions can be sent to the Ministry’s office in New Delhi or via email, with a deadline of 6 August 2026.