New CAFE 3 rules announced for vehicles:Increasing car mileage reducing pollution will be essential for companies

The Central Government has announced the third phase of the CAFE-3 norms for passenger vehicles. These norms will remain in force for five years, from 1 April 2027 to 31 March 2032. The government issued the notification on 30 September. Under the new norms, one electric car will be counted as equivalent to three cars when calculating an automobile company’s overall average. The rules will apply to M1-category passenger vehicles covered under the Central Motor Vehicles Rules, 1989. The main aim of these norms is to improve vehicle mileage and reduce pollution (CO2). After the introduction of these norms, automobile companies will be required to increase the share of electric (EV) and hybrid vehicles in their portfolios, along with higher-mileage petrol and diesel cars. What are the CAFE norms and how are they calculated? CAFE refers to the mileage and pollution standards set by the government for car companies. Under these rules, an overall score is calculated for all the vehicles sold by a company in a given year, based on their average weight, fuel consumption and the emissions they produce. This does not mean that every car sold by the company must meet the prescribed mileage. Instead, the combined average of all the small cars, large SUVs, hybrids and EVs sold by the company must fall within the limits set by the government.