New Delhi: The government has introduced new fuel-efficiency rules for passenger vehicles, with a target of improving average fuel efficiency by 16.7% over five years. The new rules are aimed at encouraging cleaner vehicle technologies, alternative fuels, electric vehicles and hybrids, ANI reported.
The new Corporate Average Fuel Economy (CAFE) norms, notified by the Ministry of Power, will apply from April 1, 2027, to March 31, 2032. They will cover new passenger vehicles manufactured or imported for sale in India.
Under the new rules, the fuel-consumption target will become stricter every year. It will move from 3.996 litres per 100 km in 2027-28 to 3.3273 litres per 100 km in 2031-32, amounting to an improvement of about 16.7% during the period.
The government has also increased the reference weight used to set the targets from 1,082 kg to 1,229 kg, an increase of about 13.6%. This change means lighter vehicles will face relatively lower targets, while heavier vehicles will have to meet higher fuel-efficiency requirements.
The new system gives vehicle manufacturers more choice in deciding which technologies to use to meet the targets. It also recognises renewable and low-carbon fuels such as ethanol-blended petrol, biofuels and compressed biogas (CBG) through a Carbon Neutrality Factor.
The government has increased the number of recognised fuel-saving technologies from four to 12. Manufacturers can receive a concession of 1 gram of CO2 per km for each eligible technology, subject to a maximum concession of 9 grams of CO2 per km.
Battery electric vehicles, range-extended electric vehicles, plug-in hybrids, strong hybrids and flex-fuel vehicles will receive additional benefits in the calculation of a manufacturer’s average fleet performance through volume-based “super credits”. The move is intended to encourage manufacturers to increase the use of cleaner vehicle technologies.
The rules also give manufacturers the option of meeting their targets over specified two-year or three-year periods. Companies that perform better than their targets can carry forward their additional credits. Those that fall short can use eligible credits, trade credits with other manufacturers or purchase credits through a mechanism managed by the Bureau of Energy Efficiency.
The Ministry of Power said the new rules will provide manufacturers with greater clarity and flexibility in choosing technologies while supporting the passenger vehicle industry in improving energy efficiency and reducing fuel consumption, ANI stated.
