Overview
- The Ministry of Power formally notified CAFE‑III in late September 2026, a five‑year manufacturer‑level regime that takes effect on April 1, 2027 and runs through March 31, 2032.
- Headline stringency tightens roughly 16.7 percent over five years with the fleet benchmark moving from 3.996 L/100km in FY2028 to 3.327 L/100km in FY2032, calculated at a raised reference weight of 1,229 kg.
- The final formula removes a separate small‑car carve‑out and flattens the weight curve so lighter fleets get relatively more allowance while heavier fleets face tougher targets.
- Compliance now relies on generous volume multipliers for low‑emission vehicles (BEVs/REEVs 3.0x, some PHEVs/flex‑fuel hybrids 2.5x, strong hybrids 1.6x), a 12‑item technology credit list (1 g CO2/km per tech, capped at 9 g), and a tradable credit‑debit passbook with BEE buyout prices rising from Rs 2,500 to Rs 4,500 per g CO2/km over the period.
- Manufacturers must report every model under both MIDC and WLTP from April 1, 2027, and industry analysts warn that the yet‑to‑be‑set MIDC→WLTP conversion and stacked flexibilities could soften real‑world fuel savings even as the rules steer firms toward more electrified and alternative‑fuel options.