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The Bureau of Energy Efficiency has released a draft of India’s next fuel-efficiency rules, CAFE-III, proposing a stricter carbon target of 91.7 grams per kilometre and a shift to a more realistic testing method from 2027. The new norms would apply from FY2027-28 to FY2031-32, replacing the current MIDC lab test with the globally used WLTP cycle which measures fuel consumption closer to real-world conditions. This matters because how carmakers respond to these targets, whether by pushing more hybrids and EVs or improving petrol and diesel engines, will shape what’s actually available in showrooms over the next five years. Here’s what the draft proposes, and what it could mean for your next car purchase.