Major Carmakers Challenge Proposed Emission Concession
India's leading automobile manufacturers, including Tata Motors and Hyundai, are urging the government to eliminate a weight-based emission concession for small cars in the upcoming efficiency regulations. According to documents reviewed by Reuters, these companies argue that the proposed exemption would primarily benefit a single competitor while potentially undermining the country's electric vehicle objectives.
Tata Motors, Mahindra & Mahindra, JSW MG Motor, and Hyundai Motor India have individually expressed their concerns to government authorities. They maintain that providing relief based on vehicle weight could distort market competition and slow India's transition to electric mobility.
The Single Beneficiary Controversy
While the manufacturers did not explicitly name the company that would gain from this provision, industry data and three automotive executives confirmed to Reuters that Maruti Suzuki would be the primary beneficiary. Maruti Suzuki, which dominates India's small car segment, derives approximately 16% of its sales from vehicles weighing less than 909 kg.
Maruti Suzuki defended the proposed concession, telling Reuters that international markets including Europe, the United States, China, Korea, and Japan all incorporate provisions in their emission regulations to protect very small cars. The company emphasized that smaller vehicles typically consume less fuel and emit lower carbon dioxide compared to larger models.
New Emission Standards and Industry Division
India's current Corporate Average Fuel Efficiency (CAFE) standards apply uniform carbon dioxide emission limits to all passenger vehicles weighing under 3,500 kg. The proposed regulations seek to significantly tighten these requirements, reducing permissible average CO2 emissions from 113 grams/km to 91.7 grams/km.
The stricter standards would particularly challenge small car manufacturers, potentially compelling automakers to accelerate their electric vehicle offerings to meet compliance targets.
India's latest draft proposal includes leniency for petrol cars meeting specific criteria: weight not exceeding 909 kg, length under four meters, and engine capacity below 1200 cc. The government rationale cites limited potential for efficiency improvements in this vehicle category.
This proposal has created a significant rift within India's automotive industry, pitting EV-focused manufacturers against Maruti Suzuki. The disagreement has reportedly delayed finalization of the regulations, creating uncertainty for automakers planning future product portfolios and powertrain technology investments.
Industry Concerns and Global Implications
Three company executives described the 909 kg threshold as arbitrary and misaligned with global standards. In a letter to India's power ministry, Mahindra & Mahindra requested the elimination of any special categories based on size or weight, warning that such provisions could adversely affect progress toward safer, cleaner vehicles and disrupt fair competition.
Hyundai raised concerns about international perception, suggesting the exemption might be viewed as regressive when global markets are moving toward stricter fuel efficiency and zero-emission standards. The Korean automaker cautioned that abrupt policy changes favoring specific segments could undermine industry stability and consumer interests, as future investments and technology deployments are typically planned around established regulatory frameworks.
JSW MG Motor highlighted the concentration of benefits, noting that over 95% of cars under 909 kg originate from a single manufacturer. In its November 21 letter to the road transport ministry, the company stated that relaxation restricted to this weight band would disproportionately benefit one manufacturer.
The controversy emerges as consumer preferences shift toward larger vehicles, with demand for sub-909 kg cars declining as Indian buyers increasingly favor SUVs. This market evolution adds complexity to the regulatory debate, balancing environmental objectives with industrial competition and consumer choice.
