Cheaper to run, but costlier to buy? New CAFE III rules kick in from April 2027; here's how your next car could be affected

India’s CAFE III fuel-efficiency norms will take effect from April 1, 2027, tightening fleet-average targets for automakers until March 2032. The rules offer incentives for electric vehicles, hybrids, flex-fuel cars and fuel-saving technologies. But will they make cars cheaper to run or push up showroom prices? Here’s how the new standards could affect vehicle costs and what buyers should consider before purchasing their next car.