Renault India is confident of meeting the upcoming Corporate Average Fuel Economy (CAFE III) norms as it expands its portfolio with strong hybrids, CNG and electric vehicles, according to Stéphane Deblaise, CEO of Renault Group India.
Deblaise said the company has the technologies needed to meet the regulations, although actual compliance will depend on customer demand for different powertrain options.
“With the plan we have of HEV, CNG, EVs, all of these technologies, we think we will fulfil the CAFE requirement," Deblaise told Autocar Professional.
The comments come weeks after the Ministry of Power notified the CAFE III norms on September 29. The regulations will apply from April 1, 2027, until March 31, 2032, replacing the existing CAFE II framework.
Under the new regulations, the reference fleet-average fuel-consumption benchmark will tighten from 3.996 litres per 100 km in FY2028 to 3.3273 litres per 100 km in FY2032, an improvement of about 16.7%. The actual target for each manufacturer will depend on the average weight of its passenger vehicle fleet.
Unlike emission standards that set limits for individual vehicle models, CAFE regulations assess the average fuel consumption of an automaker's passenger vehicle portfolio. This means manufacturers can offset less efficient petrol or diesel vehicles by selling more fuel-efficient and electrified models.
The notified framework also provides additional compliance benefits for cleaner powertrains. Under the government's notification, battery-electric vehicles receive a volume multiplier of 3.0 in fleet-average calculations, while strong hybrids receive a multiplier of 1.6. The regulations also recognise CNG and other alternative fuels through provisions that account for their environmental benefits.
For Renault, the introduction of the Duster Strong Hybrid E-Tech 160 marks an important step in expanding its fuel-efficient vehicle portfolio. Launched on Saturday at an introductory price of Rs 16.99 lakh, the SUV combines a 1.8-litre petrol engine with two electric motors and a 1.4 kWh battery, delivering a combined output of 160 PS.
The Duster hybrid has an ARAI-certified fuel efficiency of 29 km/l. Renault is positioning the technology as an alternative to diesel, particularly for customers seeking lower running costs without moving to a battery-electric vehicle.
Deblaise believes hybrids will become increasingly important as the Indian passenger vehicle market shifts away from its earlier dependence on petrol and diesel.
He said Renault had decided against reintroducing diesel technology, drawing on its experience in overseas markets where hybrids have increasingly replaced diesel vehicles.
The company is also expanding its CNG offerings. Renault currently provides government-approved CNG kit fitment options through its dealer network for the Triber and Kiger, while developing factory-fitted dual-cylinder CNG technology.
In an earlier interview, Deblaise said the new CNG system would use cylinders placed beneath the vehicle floor to preserve luggage space. He indicated that Renault was developing the technology around a 1.0-litre turbo-petrol engine.
Electric vehicles form another part of Renault's planned product expansion. Under its futuREady India strategy announced in April, the company plans to expand its portfolio to seven models by 2030, spanning compact cars and larger SUVs, with petrol, hybrid and fully electric powertrains.
The company has said its upcoming Bridger-based compact SUV will be developed on a platform designed to accommodate multiple powertrain technologies, including electric propulsion.
The shift towards a broader powertrain mix is significant for Renault, whose Indian passenger vehicle portfolio has largely depended on petrol engines in recent years.
Deblaise acknowledged that the country's powertrain landscape has changed substantially, with customers now choosing between petrol, diesel, CNG, hybrids and electric vehicles.
He said Renault's biggest learning from its recent experience in India was the importance of offering customers a wider choice of engines and powertrains.
The adoption of these technologies will also determine how comfortably automakers comply with CAFE III. Although the framework provides regulatory benefits for efficient vehicles, the eventual contribution of each technology will depend on how many customers choose it.
The new regulations also allow manufacturers to generate, exchange and trade compliance credits, giving companies additional flexibility to meet their fleet-level targets.
Renault's expanding powertrain strategy is part of its broader effort to rebuild sales and market share in India while preparing its product portfolio for tighter fuel-efficiency requirements.