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CAFE-III Norms: Fuel Efficiency Rules for Automakers

9 December 20251 min read
ENVIRONMENT & ECOLOGYCAFE-III Norms:Fuel EfficiencyRules forAutomakers9 December 2025safalsetu.com

Why in the news

ICCT and IRF each asked India to rethink more relaxations in CAFE-III. Carmakers say the revised targets are too tough for the sector.

Key facts

  • Bodies: International Council on Clean Transportation (ICCT) and International Road Federation (IRF).
  • CAFE is a mandatory ceiling on fleet-wide average CO₂ per km.
  • In India it runs with Bharat Stage norms, effective April 2022, for passenger and commercial vehicles.

Purpose

  • Energy security through lower fuel use.
  • Fewer greenhouse gas emissions.
  • Investment in efficient, hybrid and electric technology.
  • Lower fuel bills for consumers.

Exam angle

  • Full form: Corporate Average Fuel-Efficiency; phase in news: CAFE-III.
  • Related terms: Bharat Stage, EVs, hybrids.

Test yourself

1. What do CAFE norms limit for an automaker?

CAFE sets mandatory limits on fleet-wide average CO₂ per kilometre.

2. Which two organisations separately asked India to reassess further concessions in CAFE-III?

ICCT and the International Road Federation made the request.

3. From which month and year do CAFE regulations apply in India for passenger and commercial vehicles?

The notes state effect from April 2022.