Corporate Average Fuel Efficiency (CAFE) Norms
Legal and Regulatory Basis
CAFE norms are fleet-wide, sales-weighted average CO2 emission standards for passenger vehicles, distinct from per-vehicle emission limits. They were first notified in India in 2017 under the Energy Conservation Act, 2001, and are administered by the Bureau of Energy Efficiency (BEE).
- CAFE-I (effective FY2017-18): fleet average capped at 130 gCO2/km
- CAFE-II (effective FY2022-23): tightened to 113 gCO2/km
- CAFE-III (draft, effective FY2027-28 onward): target curve from 94.76 gCO2/km down to 76.77 gCO2/km by FY2031-32
- Applies to petrol, diesel, LPG, CNG, hybrid, and electric passenger vehicles with gross vehicle weight below 3,500 kg
- Uses a weight-based target curve — heavier vehicles get a higher permissible emission ceiling relative to a shifting industry-average reference weight
● Tracked since April 16, 2026 · last seen August 06, 2026 · updates as the daily brief publishes
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