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