The draft proposes the implementation of the 2nd phase of fuel efficacy norms for CVs over 5 years from 2027 to 2032, with a fuel efficiency target of 30% below a new baseline for fuel consumption.
28 Jul 2025 | 8292 Views | By Kiran Murali
The Ministry of Power on Monday released the draft proposal for implementing future fuel efficiency norms for commercial vehicles. The draft proposes a new methodology for establishing baselines for fuel consumption, critically expands regulatory coverage to include all fuel types beyond just diesel, and notably brings Light Commercial Vehicles (LCVs) ...
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The Ministry of Power on Monday released the draft proposal for implementing future fuel efficiency norms for commercial vehicles. The draft proposes a new methodology for establishing baselines for fuel consumption, critically expands regulatory coverage to include all fuel types beyond just diesel, and notably brings Light Commercial Vehicles (LCVs) under its ambit for the first time. The fuel efficiency targets proposed are 30% below the new baseline.
The ministry, in consultation with the Bureau of Energy Efficiency (BEE), introduced Constant Speed Fuel Efficiency (CSFC) norms for M3 and N3 vehicle categories in 2017, followed by the expansion of these norms to include M2, M3, and N2 categories in 2019. M2 and M3 refer to passenger vehicles with more than eight seats in addition to the driver's seat, while N2 refers to goods vehicles with a maximum weight exceeding 3.5 tonnes but not exceeding 12 tonnes.
Passenger cars (M1 category) are already governed by Corporate Average Fuel Economy (CAFE) standards. But LCVs, weighing less than 3,500 kg Gross Vehicle Weight (GVW), have been operating without such regulations. The draft noted that bringing LCVs, most of which have a curb weight between 1,000-2,000 kg, under a regulatory framework is anticipated to be a significant step towards decarbonization and will also contribute to reducing fuel costs for small businesses.
Meanwhile, the proposal outlines a methodology for establishing new baselines for fuel consumption. For M2, M3, N2, and N3 vehicle categories, ranging from 3.5 to 55 tonnes in GVW, a new baseline for fuel efficiency is proposed using data from the fiscal year 2022-23 data. The lowest values in the first quartile from the data of different axle configurations was selected for the new baseline.
The proposal suggests that N1 vehicles should aim to reduce their fuel consumption by 22% from this established baseline, as measured on the Modified Indian Driving Cycle (MIDC). This 22% is the initial target for improvement. BEE is assuming that a 16% difference exists between the MIDC and Worldwide Harmonized Light Vehicles Test Procedure (WLTP).
MIDC is a standard test cycle used in India to measure vehicle emissions and fuel consumption, while WLTP is a global standard test cycle. The government has also proposed Super Credits for vehicles using alternative fuel technologies such as fuel cell vehicles, battery electric vehicles, plug-in hybrids, range extenders and strong hybrids.
The government implemented the second phase of CAFÉ norms for passenger cars in April 2022, while for Light and Medium Commercial Vehicles (LMCVs) and Heavy-Duty Vehicles (HDVs) first phase was implemented. The draft now proposes the implementation of the second phase for LMCVs and HDVs, M2, M3, N1, N2, and N3 categories, over five years from 2027 to 2032. The proposed stringency for the second phase is 30% over the new baseline derived from FY23 data for M2, M3, N2, and N3 vehicles.
The fuel consumption data is proposed to be derived from standardized tests at 40 km/h and 60 km/h to ensure consistency. “The regulations introduce a normalized efficiency metric and a fleet-wide compliance mechanism to account for the diversity of truck models and their usage. The key focus is on reducing fuel consumption per unit of payload, encouraging the adoption of efficient technologies, and meeting CAFE targets,” the draft says.