# CAFE III Pushes Carmakers Towards EVs, Hybrids and CNG

2026-08-06T17:58:36+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

India’s proposed CAFE III rules are pushing carmakers to expand electric, hybrid and CNG offerings before implementation from April 2027. Fleet emissions could tighten by nearly 16% in 2027-28 and up to 30% by 2031-32. Maruti Suzuki plans product upgrades, more EVs, hybrids and hydrogen research, while Mahindra & Mahindra says battery EVs already form 12-15% of its portfolio. Hyundai Motor India is relying on EVs, CNG and hybrids, with six CNG models planned by 2030. The rules may allow credits for over-compliance and strong hybrids, but non-compliance could attract penalties. ICRA reports that ICE-heavy carmakers face the greatest risk, with compliance requiring multi-year investment and potentially higher prices. The shift could also deliver projected fuel savings of Rs 38,000 crore.

## Coverage

- auto.economictimes.indiatimes.com <https://auto.economictimes.indiatimes.com/news/industry/cafe-norms-iii-push-oems-to-rethink-product-mix-and-ev-strategy/132995412>

Tags: automobiles, CAFE III, CNG, electric vehicles, hybrids
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