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With the upcoming CAFE 3 norms, the passenger car industry is finally receiving the policy direction it has long craved. OEMs should commit to it and move ahead, says Srini.

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October 2025

There is light at the end of the smog.

- by SRINIVAS KRISHNAN

With the upcoming CAFE 3 norms, the passenger car industry is finally receiving the policy direction it has long craved. OEMs should commit to it and move ahead, says Srini.

The Bureau of Energy Efficiency (BEE), which operates under the Ministry of Power, has released a draft of the CAFE 3 norms for consultation and discussion. The Ministry of Road Transport and Highways (MoRTH) is tasked with consulting the stakeholders affected by these norms and plays an advisory role in formulating these standards.

The CAFE 3 norms are scheduled to take effect in April 2027, with standards that become progressively tighter through March 2032. The annual fuel consumption standards will be calculated as weighted averages in litres per 100 km, factoring in unladen vehicle mass and CO2 emissions. Vehicle weight will play a major role in these calculations. Importantly, India will transition from the Modified Indian Driving Cycle standards for measuring emissions to the globally accepted WLTP cycle.

The Worldwide Harmonised Light Vehicles Test Procedure may be a mouthful, but it offers a more realistic and accurate assessment of vehicle CO2 and pollutant emissions, fuel consumption, and electric range. Using both laboratory and real-world testing, the WLTP applies to all powertrains - ICE, hybrids, plugin hybrids, and BEVs. Even if adapted for Indian driving conditions, adopting the WLTP protocol will help OEMs in India export their vehicles to many developed markets a significant side benefit.

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