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Corporate Average Fuel Efficiency (CAFE)-III

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Why in News?

The proposal to relax emission targets for small cars under the upcoming Corporate Average Fuel Efficiency (CAFE)-III norms is still under discussion, according to the Power Ministry Secretary.

What are CAFE Norms?

CAFE (Corporate Average Fuel Efficiency) norms mandate automobile manufacturers to maintain a prescribed average fuel efficiency across their fleet of vehicles sold in a given year.

  • Aim to reduce fuel consumption and carbon emissions.
  • Encourage adoption of cleaner and more efficient technologies.
  • Implemented in phases (CAFE-I, CAFE-II, and upcoming CAFE-III).
Background
  • CAFE-I and CAFE-II progressively tightened fuel efficiency standards.
  • CAFE-III is expected to introduce stricter emission and fuel efficiency targets in line with India’s climate commitments and energy transition goals.

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  • Agri Business
  • Agriculture
  • AIC
  • Answer Key
  • Banking/Finance
  • Bill and Amendment
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  • Current Affairs
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  • Daily English Editorial Analysis (DEEA)
  • Daily Quiz
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  • International Relationships of India
  • IRDAI
  • Job Notification
  • NABARD Grade A
  • National Affairs
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    • DEEA August 2025
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    • SEBI Previous Year Question Papers (SEBI PYQ)
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    • SIDBI Previous Year Question Papers (SIDBI PYQ)

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