A major disagreement between India's leading automobile manufacturers over upcoming emission standards has moved from private boardrooms into the public eye. The conflict centers on whether smaller, more affordable cars should be subject to less stringent environmental regulations.
Tata Motors Takes a Firm Stand
Tata Motors Passenger Vehicles Ltd has publicly rejected any proposal to ease emission norms for small cars. This position directly challenges a long-standing demand from the market leader, Maruti Suzuki India Ltd. The announcement was made by Shailesh Chandra, Managing Director of Tata Motors, who also serves as the president of the industry lobby group Siam (Society of Indian Automobile Manufacturers).
Chandra stated there is "no justification" for any relaxation in the next phase of emission rules for small cars. He made these comments on the sidelines of the company's Q2 earnings announcement on Friday, November 14, 2025.
The Core of the Controversy: Weight vs. Safety
The debate is focused on the upcoming third phase of India's Corporate Average Fuel Efficiency (Cafe-3) norms. A proposal from the Bureau of Energy Efficiency suggested more lenient emission reduction targets for cars weighing less than 909 kg.
Maruti Suzuki Ltd, the dominant player in the lightweight car segment, along with Toyota, supports this two-tier structure. They argue that the increasingly strict norms could make small cars economically unviable, potentially forcing them to be discontinued. Hisashi Takeuchi, Maruti Suzuki's Managing Director, had even written a personal letter to Chandra seeking support, invoking the legacy of late industry icons Ratan Tata and Osamu Suzuki.
However, Tata Motors' Chandra strongly disagrees. He warned that redefining small cars based on weight, rather than the current parameters of length and engine size, would encourage unsafe vehicle designs. "We do not support any move to include weight in the definition of a small car. Such an arbitrary criteria would conflict with one of the country's most critical imperatives, which is safety," he asserted.
Safety Ratings and Market Consequences
Chandra provided a critical data point to support his argument: no car currently weighing less than 909 kg meets the safety standards of the Bharat New Car Assessment Program (BNCAP). The BNCAP program awards star ratings for vehicle safety, with five stars being the highest.
"Encouraging lighter vehicles would undermine the significant progress the industry has made in improving safety standards and protection," Chandra cautioned. He also disputed the idea that this exception would primarily help two-wheeler users upgrade to safer cars, pointing out that some cars weighing around 909 kg are priced as high as ₹10 lakh and would also receive the emission concession.
Chandra further noted that the government's recent revision of Goods and Services Tax (GST) reinforces the definition of small cars by length, not weight. Smaller cars attract an 18% GST, while larger vehicles are taxed at 40%.
This public rift highlights a fundamental strategic divide in the Indian auto industry. On one side is the argument for affordability and preserving the small car segment, and on the other is the uncompromising stance on vehicle safety and uniform emission standards.
