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India tightens CAFE 3 fuel-efficiency rules from 2027

2026-09-30 · 1 source · CNBC TV18 Business

In short

India is tightening its CAFE 3 fuel-efficiency rules from 2027. Carmakers will be able to meet the rules in different ways, including by using EVs, hybrids, cleaner fuels and credits.

This matters for carmakers and buyers because it can change what kinds of vehicles are built and sold. The reporting does not say the exact targets or which companies will struggle most.

What the reporting says

India’s CAFE 3 rules tighten fuel-efficiency targets from 2027, according to publisher-supplied reporting. The rules also give carmakers several compliance paths, including EVs, hybrids, cleaner fuels and credits. The reporting does not give the exact targets or say how each automaker will be affected.

Why it matters

India’s CAFE 3 rules will tighten fuel-efficiency targets from 2027, with multiple compliance options for automakers including EVs, hybrids, cleaner fuels and credits. The reported change affects carmakers and could influence vehicle mix, product planning and compliance costs. The reporting does not provide the target levels, the scorecard methodology, or any company-specific impact.

Touches: EV, Companies, Government

Sources