Why it is in the news
The Ministry of Power has notified the third phase of Corporate Average Fuel Efficiency (CAFE-III) norms for passenger vehicles, applicable from 1 April 2027 to 31 March 2032; the notification, dated 29 September 2026 according to The Indian Express, was reported on 30 September. Each carmaker's fleet must cut average fuel consumption by about 16.7% over the five years, with electric vehicles earning the largest compliance credit.
The exam angle
Issue: Can a fleet-average standard decarbonise India's fast-growing car market while keeping entry-level cars affordable and leaving room for multiple technologies?