BS7 Emissions Norms: A Digital Health Check for Your Vehicle

The upcoming Bharat Stage 7 (BS7) standards represent a paradigm shift in emissions control. Unlike previous regulations focused solely on a vehicle’s initial emissions, BS7 mandates sustained cleanliness throughout the vehicle’s lifespan.

Traditionally, emission tests were conducted in controlled laboratory settings. However, BS7 introduces On-Board Monitoring (OBM) – essentially a real-time diagnostic system embedded within your car’s computer. This system continuously monitors pollution levels during actual driving conditions, flagging any deterioration in performance.

A key component of BS7 is fuel neutrality. Currently, diesel vehicles are permitted slightly higher nitrogen oxide (NOx) emissions compared to petrol vehicles. BS7 will standardize this limit to 60 mg/km for both fuel types. This poses a significant challenge for diesel engine manufacturers, requiring costly filters and advanced technologies to comply. Consequently, entry-level diesel cars are becoming increasingly rare due to the escalating production costs.

CAFE III: Incentivizing the Electric Vehicle Transition

The Corporate Average Fuel Efficiency (CAFE) III standards, set to take effect in April 2027, compel automakers to reduce the overall carbon dioxide (CO2) emissions of their entire fleet. Think of CAFE as a comprehensive performance review for car companies, evaluating their collective efficiency rather than individual models.

The new target of 91.7 g/km of CO2 is considerably stricter than current regulations. To meet these demands, manufacturers are leveraging “Super Credits.” Each electric vehicle (EV) sold earns the company credits equivalent to three zero-emission vehicles in government calculations, effectively offsetting the emissions of larger, less efficient SUVs. This explains the recent surge in EV and hybrid offerings from brands like Maruti and Tata. Without these credits, continuing to sell traditional petrol and diesel vehicles will become increasingly difficult.

What impact will these regulations have on your driving experience? Will the push for efficiency compromise performance or affordability?

The Vehicle Scrappage Policy: From Old Metal to New Incentives

The End-of-Life Vehicle (ELV) Rules 2025 mandate the scrapping of old and unfit vehicles at certified facilities, eliminating the practice of selling them through informal junk markets.

If your personal vehicle is older than 20 years (or 15 years for commercial trucks) as of April 2025, it will be subject to a rigorous fitness test. Failure to pass results in a 180-day window to dispose of the vehicle at a Registered Vehicle Scrapping Facility (RVSF).

The government is actively incentivizing participation. Scrapping your old vehicle earns you a Certificate of Deposit, unlocking a 5% discount on a new car purchase, along with a road tax rebate of up to 25% from the manufacturer. This transforms an environmental liability into a down payment on a cleaner, safer vehicle.

For more information on responsible vehicle disposal, visit the Ministry of Environment, Forest and Climate Change website.

Frequently Asked Questions

1. Why are car prices rising in January 2026?

   A. Prices across most brands increased by up to 3% on January 1, 2026, primarily due to rising material costs, including steel, and the implementation of new safety regulations, such as mandatory ABS for all two-wheelers.

2. Will my older diesel car be banned outright?

   A. A nationwide ban isn’t currently in effect, but some regions, like the Delhi NCR, may implement camera-based fuel restrictions for vehicles older than 10-15 years. Outside these areas, passing the required fitness test remains the primary requirement.

3. What are the advantages of choosing a hybrid car over a petrol-only model?

   A. Hybrids are key to compliance with CAFE III standards. Manufacturers may introduce more features or lower costs for hybrid models to meet their emission targets, potentially making them more attractive than traditional petrol cars.

4. Are electric vehicles the ultimate solution to these new regulations and taxes?

   A. Not necessarily. While EVs benefit from lower taxes, the government is also promoting Flex-Fuel (ethanol blends) and Compressed Natural Gas (CNG) as viable alternatives. CNG, in particular, is becoming increasingly competitive due to anticipated price reductions.

5. How do I activate the 5% scrappage discount?

   A. Bring your used car to a Registered Vehicle Scrapping Facility (RVSF). They will issue a Certificate of Deposit, which you can present to any authorized dealer to receive the discount on your new car purchase.

Regulatory Timeline

Source: Data obtained from the Ministry of Road Transport and Highways (MoRTH), Bureau of Energy Efficiency (BEE), and 2026 Industry Reports.