Corporate Average Fuel Efficiency (CAFE)-III norms have now been notified by the Centre and will govern passenger vehicles from 1 April 2027 to 31 March 2032. The permitted fuel use falls step by step, from 3.996 litres per 100 km (2027–28) to 3.3273 litres (2031–32). For compliance, every Battery Electric Vehicle (BEV) counts as three vehicles, and extra credits go to flex-fuel, strong hybrid and plug-in hybrid models. Biofuels and fuel-saving features like tyre-pressure monitoring and regenerative braking are also rewarded. Through Carbon Neutrality Factors, declared CO2 emissions will be lowered for vehicles that run on biofuels, compressed biogas or ethanol-blended petrol.