Revised fuel-efficiency norms
Context:
For the first time, special concessions have been given to small cars. This mainly benefits companies like Maruti Suzuki, which makes many hatchbacks and compact sedans.
Who counts as a small car?
A petrol car that:
Weighs 909 kg or less,
Has an engine capacity of 1,200 cc or less,
Is under 4,000 mm long.
Other benefits :
Incentives for flex-fuel cars (that run on ethanol blends) and strong hybrid vehicles.
Automakers struggling to meet targets can team up in a pool with up to two other companies to share compliance.
When will this apply?
From 2027-28 to 2031-32 (CAFE Phase III).
Why important?
CAFE norms aim to make cars more fuel-efficient, reduce oil use, and cut pollution.
What are CAFE norms?
CAFE = Corporate Average Fuel Efficiency.
These are government rules (introduced in April 2017) that force carmakers to sell more fuel-efficient, low-emission vehicles.
It applies to almost all passenger vehicles under 3,500 kg (petrol, diesel, LPG, CNG, hybrids, and EVs).
How does it work?
A company can sell big SUVs (which burn more fuel) only if it balances them by selling smaller, fuel-efficient cars.
What matters is the average CO₂ emissions of all cars sold in a year, not each car individually.
Current status (CAFE-II, since 2022–23):
Fuel use must be ≤ 4.78 litres/100 km
OR emissions ≤ 113 g/km of CO₂
If a company goes above this, it pays heavy fines.
What’s next?
Government is tightening rules further with CAFE-III (2027–32) and CAFE-IV (2032–37).
Target for CAFE-III: bring average emissions down to 91–95 g/km (stricter than today).
CAFE majorly focuses on COx emissions. BS6, on the other hand, focuses on overall emissions which include NOx (Nitrogen Oxides), SOx (Sulphur Oxides).
The CAFE regulations aim to reduce the overall COx (Carbon Oxides) from the exhaust of the vehicle.