The Centre on Thursday released the draft CAFE-III regulations, offering relief for small petrol cars, incentives for clean alternative technologies, and flexibility through fleet pooling to help automakers meet stricter fuel efficiency targets.

The draft norms allow petrol vehicles under 909 kg, 1200 cc, and 4000 mm to deduct 3.0 g CO2/km from declared emissions, capped at 9.0 g/km per model. This provides added relief alongside existing technology-based savings.

To support compliance and accelerate the shift to cleaner technologies , the draft Corporate Average Fuel Efficiency (CAFE)-III norms introduce a super-credit system. Under this, green vehicles receive higher weight in fleet-average calculations. For instance, a battery electric vehicle (BEV) or range-extender hybrid counts

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