Development · 6 Oct 2026
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The Corporate Average Fuel Efficiency (CAFE-III) framework, effective from April 2027, tightens fleet fuel-efficiency requirements while allowing automakers to pursue multiple compliance pathways.
CAFE-III norms will tighten fleet-average fuel-efficiency targets by 16.7% by FY32, while giving automakers multiple compliance routes through EVs, hybrids, alternative fuels and fuel-saving technologies.
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