{
  "id": 13141210,
  "title": "CAFE III kicks in from 2027: Will your next car be cheaper to run?",
  "url": "https://urgent.news/2026/10/09/cafe-iii-kicks-in-from-2027-will-your-next-car-be-cheaper-to-run",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-09T14:33:37.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/india/cafe-iii-kicks-in-from-2027-will-your-next-car-be-cheaper-to-run/articleshow/134836042.cms"
  },
  "original_language": "en",
  "account": "Starting April 1, 2027, new Corporate Average Fuel Economy (CAFE III) norms will be enforced in India until March 31, 2032. These regulations aim to make passenger vehicles more fuel-efficient, potentially leading to cheaper running costs. The fleet-average benchmark will improve from 3.996 litres per 100 km in 2027-28 to 3.3273 litres per 100 km in 2031-32, a reduction of approximately 16.7%. Automakers will have to meet fuel-efficiency targets based on the overall performance of their passenger vehicle fleet, rather than each model individually.\n\nThis change will require carmakers to consider the efficiency of their entire lineup when developing, manufacturing, and selling vehicles. Jyoti Prakash Gadia, managing director of Resurgent India Limited, explained that CAFE III introduces stricter fuel economy targets and new fleet-weighting rules, along with incentives for clean technology. The framework strengthens the earlier fleet-averaging system, responding to increased car ownership and advancements in automotive technology.\n\nThe benefits of CAFE III may not be evenly distributed to all car buyers. While more fuel-efficient models might be offered, actual savings will depend on the specific vehicle, driving conditions, fuel or electricity prices, and yearly usage. Car prices could rise due to the cost of compliance, but competition and economies of scale may help limit the increase. Automakers have the flexibility to choose different technologies, such as battery electric vehicles (BEVs), hybrid systems, and alternative-fuel models, thanks to volume derogation factors provided in CAFE III. These factors include incentives for BEVs, REEVs, PHEVs, strong hybrids, and flex-fuel ethanol vehicles, making them more attractive and encouraging manufacturers to produce more of them.",
  "summary": "India is set to implement new Corporate Average Fuel Economy norms from April 2027, aiming to enhance fuel efficiency. Automakers will face stricter fuel-consumption targets and incentives for clean technologies, which may impact vehicle prices. Buyers must consider total ownership costs, including maintenance and energy, before purchasing new cars. The regulations will promote various…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}