Power Ministry Circulates Draft Corporate Average Fuel Economy Norms

20 Jul 2026 CW Team

These coverage definitions will determine the fleet segments that manufacturers and importers must account for when calculating corporate average fuel economy. The draft therefore sets the compliance perimeter for the five year period and frames the metrics against which corporate averages will be measured. This clarity is intended to assist industry planning for the upcoming compliance window.

The Ministry has invited suggestions and feedback from stakeholders and the public and set a deadline of the sixth of next month for submissions. Responses received during the consultation will be reviewed by the Ministry and used to refine the final regulation prior to notification. The process provides an opportunity for vehicle makers, trade bodies and consumer representatives to present technical comments.

The draft norms aim to establish fleet wide fuel economy targets that will guide vehicle design, procurement and import strategies across the M1 segment. The regulatory measure forms part of broader energy and transport policy efforts to manage fuel consumption and efficiency at the national level. Manufacturers will need to consider the timelines for the 2027-28 to 2031-32 compliance window in their product planning.

Stakeholders seeking to participate in the consultation are expected to follow the submission details published by the Ministry. The finalised norms will set the standards applicable to passenger vehicles in the specified period and will be announced following consideration of feedback.

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The Ministry of Power (MoP) has circulated the draft Corporate Average Fuel Economy (CAFE) 2027 norms for stakeholder consultation. The draft specifies that the proposed norms will apply to the M1 category of passenger vehicles, which covers motor vehicles designed for carrying passengers with a seating capacity of not more than eight persons in addition to the driver's seat, manufactured or imported for sale in the country during the period 2027-28 to 2031-32. The circulation initiates a formal consultation process to collect technical and policy feedback from industry and the public. These coverage definitions will determine the fleet segments that manufacturers and importers must account for when calculating corporate average fuel economy. The draft therefore sets the compliance perimeter for the five year period and frames the metrics against which corporate averages will be measured. This clarity is intended to assist industry planning for the upcoming compliance window. The Ministry has invited suggestions and feedback from stakeholders and the public and set a deadline of the sixth of next month for submissions. Responses received during the consultation will be reviewed by the Ministry and used to refine the final regulation prior to notification. The process provides an opportunity for vehicle makers, trade bodies and consumer representatives to present technical comments. The draft norms aim to establish fleet wide fuel economy targets that will guide vehicle design, procurement and import strategies across the M1 segment. The regulatory measure forms part of broader energy and transport policy efforts to manage fuel consumption and efficiency at the national level. Manufacturers will need to consider the timelines for the 2027-28 to 2031-32 compliance window in their product planning. Stakeholders seeking to participate in the consultation are expected to follow the submission details published by the Ministry. The finalised norms will set the standards applicable to passenger vehicles in the specified period and will be announced following consideration of feedback.

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