The Ministry of Power (MoP) on September 29, 2026, issued the Corporate Average Fuel Economy (CAFE) Norms for M1 Category Motor Vehicles, 2027–2032.
The following has been stated:
• The Government has specified CAFE norms and energy consumption standards for M1 category motor vehicles for the period April 1, 2027 to March 31, 2032 under the Energy Conservation Act, 2001. Manufacturer-specific annual fuel consumption standards will be determined based on the weighted average unladen mass of vehicles, with actual fuel consumption assessed using MIDC and applicable conversion factors.
• Manufacturers may claim specified technology derogations, carbon-neutrality factors and volume-based super credits for eligible low-emission vehicles, while credits/debits will be recorded in a passbook and may be traded or pooled between manufacturers. Debit balances may also be offset through purchase of credits from the Bureau of Energy Efficiency at prescribed prices.
• The norms will apply annually from FY 2027–28 to FY 2031–32, with the first compliance block covering three years and the second covering two years. Trading or exchange of credits will be permitted during the annual October 1–31 window, with final passbooks submitted by November 30. Small-volume manufacturers producing/importing fewer than 1,000 eligible vehicles in a reporting period are exempt from specific emission targets but shall continue reporting fuel-consumption data.
• The notification takes effect from April 1, 2027 and ceases to have effect after March 31, 2032.
[Notification No. - S.O. 5346(E)]
