CAFE-3 Norms: Pooling & Relaxation for Small Cars

New Delhi, Sep 26 (PTI) Bureau of Energy Efficiency (BEE) has proposed new Corporate Average Fuel Efficiency-3 standards for passenger vehicles, which allow manufacturers' pooling, relaxation for small cars and consideration of flex fuel, hybrid and electric models.

These standards shall come into force from 1st April 2027 until 31st March 2032, stated the draft Corporate Average Fuel Efficiency (CAFE) standards for four-wheeled motor vehicles, other than quadricycles, a BEE order, issued on September 25, stated.

The draft CAFE-3 norms provide that for the purpose of meeting their Annual Average Fuel Consumption Standard, manufacturers (not more than 3) of said motor vehicles may decide to conclude a pool.

According to the document, a pool shall be considered as 'one manufacturer' for the purpose of compliance with Annual Average Fuel Consumption Standard.

A manufacturer can only be a member of one pool in a given reporting period.

The manufacturer nominated as the 'pool manager' will be the contact point for the pool and will be responsible for paying any penalty imposed on the pool in accordance with Energy Conservation Act, 2001 (52 of 2001).

The new norms also consider flex-fuel vehicles running on ethanol-petrol blends as well as electric vehicles under CAFE-3.

These standards may be called Corporate Average Fuel Consumption Standard 2027-32, herein after called as CAFE 2027, it stated.

The BEE has sought stakeholders' comments on the draft norms within 21 days from the date of issuance of the office memorandum (September 25, 2025).

Presently, India is under CAFE-2 rules.