Economy
Centre notifies new CAFE norms tightening vehicle emission targets
The Hindu2h
THE BRIEF
1
The Centre notified new Corporate Average Fuel Economy norms setting carbon emission limits for passenger vehicles from April 1, 2027, to March 31, 2032.
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The fuel-consumption benchmark will tighten from 3.996 litres per 100 km in 2027-28 to 3.3273 litres in 2031-32, marking a 16.7% improvement.
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The framework introduces a Carbon Neutrality Factor offering manufacturers incentives of up to 1 g CO2/km for adopting cleaner fuels like ethanol and compressed biogas.