Hyundai, Tata, Mahindra Oppose Weight-Based Emission Concession in New Efficiency Rules

Many of India's leading automakers, including Tata Motors, Mahindra & Mahindra, JSW MG Motor, and Hyundai, have formally urged the government to reconsider a proposed weight-based concession for small cars under the upcoming Corporate Average Fuel Efficiency (CAFE) norms.

According to Reuters, the companies argue that the exemption would unfairly benefit a single manufacturer, widely understood to be Maruti Suzuki, and could undermine India's electric vehicle (EV) adoption goals.

The new CAFE norms aim to tighten the average permissible carbon dioxide emissions for passenger vehicles to 91.7 grams per kilometre, down from the earlier target of 113 gm/km.

The draft regulation includes a provision offering leniency for petrol cars weighing 909 kg or less, measuring under four metres in length, and with an engine capacity below 1200 cc, citing their "limited potential for efficiency improvements."

The opposing manufacturers contend that this threshold is arbitrary and not aligned with global standards. In its communication to the government, Mahindra requested the omission of any "special category" based on size or weight, warning that it could "have adverse effects on the nation's progress towards safer, cleaner cars and alter the level playing field."

Hyundai expressed concern that the exemption might be perceived internationally as a regressive step, potentially undermining industry stability and long-term customer interests.

JSW MG Motor highlighted in its letter that over 95% of cars under 909 kg are produced by a single carmaker, meaning the relaxation would disproportionately benefit one player. The disagreement has reportedly caused delays in finalising the regulation, which is critical for automakers to plan future product portfolios and investments in new powertrain technologies.

In response, Maruti Suzuki defended the provision, stating that global markets like Europe, the U.S., and Japan have similar safeguards for very small cars, which consume less fuel and emit less CO₂. The company noted that about 16% of its sales come from models under 909 kg, though demand in this segment is declining as consumer preference shifts towards larger SUVs.

The outcome of this debate will significantly influence the competitive landscape and the strategic direction of India's automotive industry as it transitions towards stricter efficiency and electrification targets.

Also read: Maruti Suzuki Completes Amalgamation of Gujarat Subsidiary into Parent Company