In a significant development, senior officials from the Indian government and representatives from the auto industry convened to discuss the Corporate Average Fuel Efficiency (CAFE-III) norms. The meeting, organized by the Bureau of Energy Efficiency under the Ministry of Power, included key stakeholders from the Ministry of Road Transport & Highways, Ministry of Power, and Ministry of Heavy Industries, along with original equipment manufacturers (OEMs). The consensus indicates a general acceptance of the latest draft proposals aimed at enhancing fuel efficiency without penalizing manufacturers. The CAFE-III norms, effective from April 2027 to March 31, 2032, will push automakers to explore diverse fuel options, including electric, hybrid, and compressed bio-gas vehicles. Small car manufacturers have expressed concerns regarding the need for leniency based on vehicle weight and affordability, while larger OEMs argue against differential treatment to maintain safety standards. Notably, the new framework allows manufacturers exceeding emission reduction targets to trade surplus carbon credits, fostering a collaborative approach toward compliance.