Draft CAFE-III norms explained: India is changing fuel efficiency rules for cars | Mileage | E20

Last Updated: Jul 17 2026 | 8:48 PM IST

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The Ministry of Power has released the draft CAFE-III norms, proposing stricter fuel-efficiency and carbon-emission standards for passenger vehicles from April 1, 2027. The five-year framework will apply to M1 category vehicles, including hatchbacks, sedans and SUVs, while excluding commercial vehicles. The draft also introduces incentives such as Carbon Neutrality Factors, super credits and compliance credits to encourage cleaner technologies. Stakeholders can submit feedback until August 6, 2026, after which the government will notify the final norms. #e20fuel #carmileage #ethanol #ethanolblending

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