by WAF Think Tank
Understanding how India’s next fuel-efficiency regime could reshape the passenger-vehicle market
India’s passenger-vehicle industry is approaching another significant regulatory transition. From 1 April 2027, the third phase of Corporate Average Fuel Economy regulations, or CAFE 3, will govern fleet-level fuel-efficiency performance for passenger vehicles.
At first glance, CAFE 3 is another technical compliance requirement. Its implications, however, extend much further.
The regulation arrives at a time when Indian consumers are moving towards larger SUVs, manufacturers are investing heavily in electric vehicles, hybrids are gaining attention and the cost of meeting increasingly demanding safety and emissions standards is rising.
CAFE 3 will therefore influence not only how efficiently individual vehicles are engineered, but also how manufacturers construct their overall product portfolios.
Continue reading “CAFE 3 Norms – The Road Ahead for India’s Car Industry”

