The Bureau of Energy Efficiency (BEE) on September 25, 2025, issued the Draft Corporate Average Fuel Consumption Standard 2027-32, called as CAFE 2027.
The following has been stated namely –
• These standards shall come into force from April 01, 2027, until March 31, 2032.
• These standards shall apply to M1 category passenger vehicles under CMVR 1989, excluding invalid carriages, special purpose vehicles, and vehicles exempted by the Government of India.
• The Ministry of Road Transport and Highways will implement and enforce testing, reporting, and CO₂-related provisions under CMVR 1989 in consultation with relevant ministries.
• The Ministry of Power, in consultation with the Bureau of Energy Efficiency, will enforce compliance under the Energy Conservation Act, 2001, and its 2025 Compliance Enforcement Rules.
• Up to three vehicle manufacturers may form a pool to jointly meet Annual Average Fuel Consumption Standards, with a designated pool manager responsible for compliance and penalties; small-volume manufacturers are exempt under CAFE 2027.
• Stakeholders may send their comments/suggestions through email to [email protected], [email protected] and [email protected], by October 16, 2025.
[Notification no. - BEE/Transport/Passenger-Cars/2025/3707-29]
