According to documents obtained by Reuters, the largest automakers in India, notably Tata Motors and Hyundai, want the government to eliminate a weight-based pollution exemption for tiny cars under proposed new efficiency regulations. They claim that doing so will only benefit one business.
In separate letters to the government, Tata, Mahindra & Mahindra, JSW MG Motor, and Hyundai expressed concern that a weight-based concession could harm India’s EV aspirations while benefiting a single player. Maruti Suzuki would be the primary benefit, according to industry data and three auto executives, albeit they did not identify the player.
Global automobile markets including Europe, the United States, China, Korea, and Japan all have some protections in their pollution standards to protect the “very small cars,” according to Maruti, the largest seller of small cars in India.
Limited potential for efficiency improvements
All passenger cars weighing less than 3,500 kg (7,716 lb) are subject to the amount of allowable carbon dioxide emissions under India’s existing Corporate Average Fuel Efficiency regulations.
The previous limit of 113 grams/km of CO2 emissions is to be tightened to 91.7 grams/km under the new regulations. Companies will be forced to sell more EVs because it will be more difficult for tiny cars to reach the goal than for giant SUVs. India has suggested leniency in its most recent draft for gasoline-powered vehicles with “limited potential for efficiency improvements” that weigh 909 kg or less, are shorter than four meters, and have an engine capacity of 1200 cc or less.
This has created a sharp split between India’s leading EV-focused companies and Maruti – for whom 16% of sales come from cars weighing under 909 kg – causing delays in finalising the regulation that is crucial for automakers to plan future product portfolios and investments in powertrain technology. Three company executives told Reuters the 909 kg threshold was arbitrary and did not align with any global standards, alleging that the move only benefitted Maruti Suzuki.
In a letter to India’s power ministry, which is drafting the rules, Mahindra requested omission of a “special category” or definitions based on size or weight. “(This) can have adverse effects in terms of the nation’s progress towards safer, cleaner cars, and can alter the level playing field for industry players,” it said
Risks to industry stability and customers
Hyundai told the industries ministry in its letter that the exemption may be perceived internationally as a step backward, at a time when global markets are converging toward stricter fuel-efficiency and zero-emission standards. “Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned on the basis of established norms,” Hyundai said in a statement to Reuters.
JSW MG Motor said that over 95% of cars under 909 kg come from a single carmaker, without naming anyone. “A relaxation restricted to this weight band would disproportionately benefit one manufacturer,” it said in its letter to the road transport ministry dated November 21. Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India’s power, transport and industries ministries also did not respond to requests.
Maruti told Reuters that small cars consume much less fuel and emit less carbon dioxide than bigger cars, so having this “safeguard” will help both CO2 reduction and fuel saving. About 16% of its sales in India are of cars weighing less than 909 kg but demand has been falling as buyers choose bigger SUVs. (Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)
