CAFE-3 notified without small-car carve-out; rollout set for April 2027

The Ministry of Power notified CAFE-3 norms effective from April 2027, without a separate small-car concession sought by Maruti Suzuki India. The revised formula eases targets for lighter fleets, retains electric-vehicle super-credits and introduces tradable compliance credits.

Source published First seen

Read the source at Business Standard (via Wayback)business-standard.com

The numbers

CAFE-3 validity end: March 2032
Final fleet reference weight: 1,229 kg
Strong hybrid super-credit factor: 1.6x

Why it matters to operators and investors

Prepare product mix and compliance budgets for April 2027 using lighter-fleet targets, EV super-credits and tradable credits rather than relying on a small-car exemption.

What to watch next

  • Publication of compliance-credit verification and trading rules
  • Maruti Suzuki India's announcement of a CAFE-3 compliance roadmap
  • Changes to Maruti Suzuki India's EV launch schedule or lighter-model lineup
  • Disclosed compliance-credit transactions and prices

The counter-case

Without a dedicated small-car concession, Maruti could face higher electrification costs or credit purchases that squeeze price-sensitive entry-level margins. Lighter-fleet relief does not necessarily offset tighter overall targets, and tradable credits offer flexibility—not guaranteed cheap compliance.