India's power ministry specifies corporate average fuel economy norms for M1 category vehicles
- Norms apply from April 1, 2027 to March 31, 2032
- Manufacturers may trade credits or buy them from the bureau
- Credit buyout price rises from $26 (INR 2,500) to $47 (INR 4,500)
NEW DELHI, Sept 29 — India's Ministry of Power on Sept 29 notified Corporate Average Fuel Economy Norms for M1 category motor vehicles for April 1, 2027 to March 31, 2032, setting annual average fuel consumption standards for each manufacturer.
According to notification S.O. 5346(E), each manufacturer's standard in petrol equivalent litres per 100 kilometres is calculated as a x (W - b) + c, where W is the weighted average unladen mass of its new vehicles. The notification was issued in consultation with the Bureau of Energy Efficiency.
The constant c falls from 3.9960 in FY 2027-2028 to 3.3273 in FY 2031-2032, and the multiplier a falls from 0.00158 to 0.00131.
Manufacturers may exchange or trade credits with other manufacturers. They may also offset debits by buying credits from the Bureau of Energy Efficiency at $26 (INR 2,500) per g CO2/km in FY 2027-2028, rising to $47 (INR 4,500) in FY 2031-2032.
Vehicles running on ethanol blended petrol (E20 or higher blends) get an 8% Carbon Neutrality Factor on tailpipe CO2, and flex fuel ethanol vehicles get 22.3%.
Manufacturers that make or import fewer than 1,000 units in a reporting period are exempt from the targets but must still report their fuel consumption.
Compliance is assessed each year. The first compliance block runs three years from 2027-2028, and the second runs two years from 2030-2031. Credits can be traded each year from Oct 1 to Oct 31.
The notification was signed by Diwakar Nath Mishra, Additional Secretary.