Overview
- Officials signaled the Corporate Average Fuel Efficiency rules will begin on April 1, 2027 and run through FY32, and SIAM said it is reviewing the draft to gauge industry readiness.
- The draft raises the fleet target line by changing the math, cutting the multiplier to 0.00158 and lifting the reference weight to 1,229 kg and the baseline to 3.996 L/100 km for 2027–28.
- The revised curve lets all vehicles emit slightly more for a given weight but helps lighter models the most, and the earlier 3 g/km break for sub‑4‑metre petrol cars has been removed and folded into the curve.
- Low‑emission credits remain in place, with each battery‑electric car counted as three vehicles for compliance, while strong hybrid credits drop to 1.6 and flex‑fuel credits to 1.1 in the draft.
- The framework under discussion adds market tools such as credit trading and possible BEE‑run offsets, and agency reports note potential exemptions for makers under 1,000 units and steep penalties for missing targets.