CAFE-III Norms: Fuel Efficiency Standards and EV Policy Link for UPSC

The PMO reviewed draft Corporate Average Fuel Efficiency (CAFE-III) norms for passenger vehicles, expected from 2027.

Key Provisions:

• Flatter emission slope
• Removal of earlier relaxation for small cars
• Progressive tightening of fleet-wide CO₂ emission standards

Objective: Reduce transport emissions and align with climate commitments.

PM E-DRIVE Scheme

Launched in 2024 with ₹10,900 crore outlay, it focuses on EV demand incentives, charging infrastructure, and domestic manufacturing support. Over 28 lakh EVs have reportedly been supported.

This signals policy convergence between fuel efficiency regulation and electric mobility transition.

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CAFE-III Norms: Fuel Efficiency Standards and EV Policy Link for UPSC

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