If you are planning to buy a new petrol or diesel car in the coming years, then this news is important for you. The Central Government has released new draft rules of Corporate Average Fuel Efficiency (CAFE)-III. The aim of these rules is to reduce fuel consumption of cars and reduce carbon emissions. The proposed rules will come into effect from April 1, 2027 and will remain in effect for the next five years. It is believed that to meet the new standards, auto companies will have to adopt new technology, which may increase the price of some models.
What are the new rules of CAFE-III?
According to the government’s proposal, these rules will be applicable to M-1 category passenger cars to be manufactured or imported between 2027-28 to 2031-32. This includes cars with maximum eight seats apart from the driver. According to the draft, companies will have to continuously improve the average fuel consumption of their entire car line-up. While the average fuel consumption target has been set at 3.996 liters per 100 kilometers in the year 2027-28, it will have to be reduced to 3.3273 liters per 100 kilometers by 2031-32. Similarly, the target of carbon dioxide emissions will also be continuously reduced.
You will get benefits by adopting green technology
The government has also proposed Carbon Neutrality Factor (CNF) for the first time. Its benefit will be available to those vehicles which use clean fuel like ethanol, biofuel or compressed biogas (CBG). Apart from this, electric vehicles, plug-in hybrid, strong hybrid, flex-fuel And there is also a proposal to give special incentives to cars with other fuel saving technologies. This will motivate companies to adopt clean technology.
Fine will be imposed if rules are not followed
A credit and debit system has also been proposed in the draft. Companies which perform better than the set target will get credit. Companies not meeting the target will be able to buy credits from other manufacturers or take credits from the Bureau of Energy Efficiency (BEE) at a fixed price. The starting price has been fixed at ₹2,500 per credit, which will increase by ₹500 every year. If the rules are not followed, action and fine can also be imposed on the companies under the Energy Conservation Act.
Will customers be affected?
To meet the new standards, companies will have to invest in engines and other technologies. This may increase the prices of some petrol and diesel cars in the initial phase. However, on the other hand, customers will get better mileage and less polluting vehicles, which may reduce fuel expenses in the long run.
Input- PTI
Also read- New EV Policy in Delhi- Know what are the conditions to avail subsidy and scrapping incentive.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
