One EV counts as three in India’s new car maths

India has implemented new Corporate Average Fuel Economy (CAFE-3) norms for passenger vehicles starting from April 1, 2027. The regulations apply to motor vehicles in the M1 category, as defined under the Central Motor Vehicle Rules, 1989. The norms are set to remain in effect until March 31, 2032.

Under the new norms, battery electric vehicles will be counted as three vehicles when calculating a carmaker's fleet average. This means that manufacturers will have to meet fuel consumption targets that are three times higher for electric vehicles compared to traditional vehicles. The fuel consumption targets are determined using the Modified Indian Driving Cycle (MIDC) and measured in petrol-equivalent litres per 100 km.

For a fleet with an average unladen mass of 1,229 kg, the standard fuel consumption is 3.996 litres per 100 km in 2027-28 and 3.3273 litres per 100 km in 2031-32. To meet these targets, manufacturers must ensure that their annual average actual fuel consumption is less than or equal to their standard in each fiscal year from April 1, 2027.

Actual fuel consumption will be measured using tailpipe CO2 emissions in grams per km, converted into petrol-equivalent fuel consumption using specific multipliers for different fuel types. Electric vehicles will be measured in kWh per 100 km, which will then be converted into petrol-equivalent consumption. Manufacturers can claim volume derogation factors or super credits based on the type of vehicle, with battery electric vehicles and range-extended electric vehicles receiving the highest credit of 3.0.