Fuel Efficiency Norms
Small cars get special mention in updated fuel efficiency norms draft
This story was originally published at 11:17 IST on 26 September 2025
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NEW DELHI - The Bureau of Energy Efficiency late Thursday released an updated draft of Corporate Average Fuel Efficiency (CAFE) norms for four-wheeler motor vehicles while offering petrol-run small cars additional buffer for the first time. The updated proposal follows the June 2024 draft of CAFE-III and CAFE-IV norms to be implemented between April 2027 and March 2037.
According to the latest draft rules, small petrol cars, weighing up to 909 kilograms with engines under 1200cc and length less than 4 metres, will be elgibile to claim additional reduction of 3 grams of carbon dioxide per kilometre on top of certified technology-based savings. However, these cars will not be allowed to claim cumulative reduction of more than 9 grams carbon dioxide per kilometre in any reporting period under the norms for 2027-32. Reporting period refers to Apr. 1- Mar. 31 of the preceding assessment year.
"This updated draft norms are now having several additional provisions which include aspects related to testing cycle, derogations, compliances etc.," the bureau said.
The latest draft also introduced Carbon Neutrality Factor, a discount on manufacturer-declared emissions, for cars using cleaner fuels. For instance, an 8% discount on tailpipe carbon dioxide for petrol vehicles using E20 - E30 fuel blends. Similarly, cars running on compressed natural gas will get a 5% discount and flex-fuel ethanol vehicles and strong hybrid electric vehicles running on flex fuel ethanol will get 22.3% discount on tailpipe carbon dioxide.
The volume derogation factor for super credit under CAFE-III norms is as follows--A factor of '3' for battery electric vehicles and range-extender hybrid electric vehicles, '2.5' for plug-in hybrid electric vehicles and strong hybrids running on flex fuel ethanol, '2' for strong hybrid electric vehicles, and '1.5' for flex fuel ethanol vehicles.
The volume derogation factor is a multiplier that allows electric vehicles and hybrid cars to be counted as more than one to increase their weight during emissions calculation. A manufacturer's overall average carbon dioxide emission is calculated by taking various factors into account, including sales volume. End
Reported by Shakshi Jain
Edited by Vandana Hingorani
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