The Bureau of Energy Efficiency (BEE) has come out with a revised draft proposal for the CAFE 3 norms to be implemented between April 2027 and March 2023. The proposal gives relief on average CO2 emissions for small cars while promoting Range-Extender Hybrid Electric (REE), flex fuel, plug-in hybrid and strong hybrid vehicles apart from battery electric vehicles (BEVs).
“Considering the limited potential for efficiency improvements in petrol vehicle models with an unladen mass up to 909 kg, engine capacity not exceeding 1200 cc and length not exceeding 4000 mm, said motor vehicle model ‘i’ shall be eligible to claim, in addition to certified technology-based savings, a further reduction of 3.0 g CO₂/km in its manufacturer-declared CO₂ performance (pi) for calculation of performance under CAFE 2027,” the proposal said.
Background
Corporate Average Fuel Economy (CAFE) norms in India represent a crucial regulatory framework aimed at improving vehicle fuel efficiency and reducing greenhouse gas emissions from the transportation sector. Introduced in April 2017, these standards mandate automotive manufacturers to achieve specific fuel efficiency targets across their entire fleet of vehicles sold in the country.
The primary purpose of CAFE norms is to combat India’s growing vehicular pollution crisis and reduce the country’s dependency on imported crude oil. Transportation accounts for approximately 10-12% of India’s total carbon emissions, with road transport being the dominant contributor. By enforcing minimum fuel efficiency standards, CAFE regulations compel manufacturers to invest in cleaner, more efficient technologies while giving them flexibility in how they achieve these targets across their product portfolio.
India’s CAFE standards were implemented in two phases. Phase-I, covering 2017-2022, set a corporate average CO2 emission target of 130 grams per kilometer (equivalent to approximately 5.49 liters per 100 km). Phase-II, which began in April 2022, tightened these standards to 113 g/km of CO2 (approximately 4.77 liters per 100 km), representing a 13% improvement over Phase-I targets. These standards apply to all passenger vehicles with gross vehicle weight up to 3,500 kg and include both petrol and diesel variants.
The effectiveness of CAFE norms has been notable though gradual. Manufacturers have responded by introducing more fuel-efficient engines, hybrid technologies, and lightweight materials in vehicle construction. The standards have accelerated the adoption of technologies like turbocharging, direct injection, start-stop systems, and mild-hybrid systems in the Indian market. Several manufacturers have also increased their focus on electric vehicles partly to offset emissions from their conventional vehicle fleet.
However, implementation challenges persist. The Indian automotive market’s price sensitivity has limited manufacturers’ ability to pass on technology costs to consumers. Additionally, the predominance of smaller, already relatively efficient vehicles in India’s market makes further efficiency gains technically challenging and expensive. The real-world fuel efficiency often falls short of certified values due to varying driving conditions, traffic congestion, and consumer driving patterns.
Despite these challenges, CAFE norms have successfully created a regulatory push toward cleaner mobility. Combined with the government’s Bharat Stage emission standards and electric vehicle promotion policies, CAFE regulations form a comprehensive approach to reducing vehicular emissions. As India commits to net-zero emissions by 2070, these standards will likely become progressively stringent, pushing the automotive industry toward greater electrification and alternative fuel adoption while ensuring that conventional vehicles become increasingly efficient.