India Tightens Car Emission Rules as Automakers Gain Trading Flexibility

India has finalized its Corporate Average Fuel Economy-III standards, requiring automakers to cut fleet-level emissions from April 2027 through March 2032. The rules target roughly a 16.7% improvement in average fuel consumption, with heavier vehicle fleets facing stricter obligations. Manufacturers can earn or trade credits and receive incentives for electric vehicles, hybrids, flex-fuel cars, alternative fuels, and approved efficiency technologies. The framework is designed to reduce oil dependence while giving companies flexibility to balance SUVs, smaller cars, and cleaner models.