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CAFE-III Norms: Fuel Efficiency Targets for FY28-FY32

27 November 20251 min read
ENVIRONMENT & ECOLOGYCAFE-III Norms:Fuel EfficiencyTargets forFY28-FY3227 November 2025safalsetu.com

Why in the news

Draft CAFE-III rules reopened an industry debate, with worries going past cost to pollution, health, safety and market structure.

Key facts

  • CAFE-III: third phase of Corporate Average Fuel Efficiency norms for FY28-FY32.
  • A maker’s average fuel efficiency across all vehicles sold must meet a target.
  • Running since FY18; the new phase has tighter targets needing better-designed components.
  • EVs earn super credits to push zero- and low-emission vehicles.

Exam angle

  • Phase covered: FY28 to FY32.
  • Incentive for EVs: super credits.

Test yourself

1. For which period are the CAFE-III norms set to apply?

The notes state CAFE-III applies between FY28 and FY32.

2. How are electric vehicles treated under CAFE-III?

EVs count as super credits to encourage zero- or low-emission vehicles.

3. What does CAFE require manufacturers to ensure?

CAFE focuses on the average fuel efficiency of a maker's whole fleet.