New Delhi, Sept. 26 -- The Bureau of Energy Efficiency (BEE) has issued a draft for the third iteration of India's fleet-wide emission norms, proposing a revised method to calculate fuel consumption and introducing carve-outs for smaller cars.

The new corporate average fuel efficiency (CAFE) norms, set to take effect from April 2027, require automakers to declare the carbon dioxide (CO₂) emissions of each vehicle model. These figures, measured in grammes per kilometre, will be used to calculate the overall fuel efficiency of an automaker's entire fleet.

Mint explains how the Centre plans to make vehicles more fuel efficient with the new formula, supercredits, carbon neutrality factors, and everything that has changed in the last y...