CAFE III kicks in from 2027: Will your next car be cheaper to run?

India is set to implement new Corporate Average Fuel Economy (CAFE) norms from April 2027, aiming to enhance fuel efficiency in vehicles. Automakers will face stricter fuel-consumption targets and incentives for clean technologies.

The new regulations may impact vehicle prices, with buyers needing to consider total ownership costs, including maintenance and energy, before purchasing new cars.

The move is expected to promote various clean technologies and reduce India's dependence on fossil fuels.