Is the petrol-diesel game over? Big change for middle class, know the rule of CAFE-3 before buying a new car.

Ethanol Fuel India: The auto sector in India is moving towards a major change. An agreement has been reached between the government and the auto industry regarding CAFE-3 (Corporate Average Fuel Efficiency) rules. These new rules will come into effect from April 2027. Under this, car companies will have to significantly reduce the pollution caused by their vehicles. In view of the increasing pollution levels, the government is continuously taking strict steps and CAFE-3 is an important initiative in that direction.

What are CAFE-3 norms?

CAFE i.e. Corporate Average Fuel Economy are such rules under which car companies will have to keep the average mileage and CO2 emissions of all their vehicles within the prescribed limits. If you understand in simple language, now the total pollution of not every single car but of the entire vehicles of the company will be seen. If this average exceeds the prescribed limit, the pressure on companies will increase and they will have to make improvements.

Big change in design and planning

Till now the rules were decided on the basis of the size of the car, but in CAFE-3 the entire focus will be on the emissions of the total vehicles of the company. This means that the total pollution will have to be reduced by combining both small cars and big SUVs. With this, companies will focus more on light materials, better aerodynamics and fuel efficient design.

What will be new in engine and fuel?

The government has asked companies to prepare for E25 fuel, in which 25% ethanol will be mixed in petrol.

• Flex-fuel engines will be promoted, which will run on both petrol and ethanol.
• More than 20% ethanol blending is also being considered in future.
• This means that in the coming time, the importance of alternative fuels along with petrol and diesel will increase rapidly.

Changes in features and technology

Electric and hybrid cars will be promoted under CAFE-3 rules. Government “super credits” Is working on a plan to provide additional benefits to companies selling more EVs and Hybrids.

Other than this:

• Focus on EV and Hybrid technology
• fuel saving features
• Engines with low CO2 emissions

Big challenge before companies

According to the new rules, companies will have to reduce emissions from 113 gCO2/km in FY27 to 78.9 gCO2/km by FY32. However, the government says that the aim is not to impose penalty, but to encourage adoption of clean and better technology. On the demand of the industry, consent has also been given to implement the credit at the end of 5 years.

Also read: Tesla is bringing 6-seater SUV, will run 750KM on one charge

What will be the impact on price?

Due to new technology and research, the price of cars may increase in the initial phase. But in the long run, better mileage and lower fuel consumption will provide relief to the middle class.

Future vehicles will be smarter

India’s auto sector is entering a new phase with CAFE-3 norms. Now the focus is clear, less pollution, better mileage and alternative fuels. Electric, hybrid and flex-fuel vehicles will increasingly be seen on the roads in the coming years.