India has notified the third phase of its Corporate Average Fuel Economy rules for new passenger vehicles manufactured or imported for sale in the country. The Ministry of Power’s September 30 announcement confirms that the framework will operate from April 1, 2027 to March 31, 2032. The Gazette notification is dated September 29.
The rules assess a manufacturer’s sales-weighted vehicle fleet, with targets adjusted for its average vehicle weight. At the reference weight of 1,229 kilograms, the permitted petrol-equivalent consumption falls from 3.996 litres per 100 kilometres in 2027–28 to 3.3273 litres in 2031–32. These figures describe the regulatory reference fleet, rather than a promised mileage for every car.
Autocar Professional’s September 30 report confirms that battery-electric and range-extended electric vehicles receive a multiplier of three in the compliance calculation, while conventional strong hybrids receive 1.6. It also reports that the final rules omit the separate small-car concession proposed in an earlier draft. The notification therefore has consequences for manufacturers’ vehicle mix as well as engineering choices.
Manufacturers performing better than their target can earn credits, carry them within the relevant compliance block and trade them with other manufacturers. Deficits can also be offset through a Bureau of Energy Efficiency buyout mechanism. The first block covers 2027–28 to 2029–30, followed by a two-year block. The new requirements take effect next April; the announcement does not establish fuel savings already achieved.