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Hyundai, Tata, Mahindra & MG Want Govt To Drop Small-Car Emission Concession - Unfair Advantage To Maruti?
Hyundai, Tata, Mahindra & MG have asked the government to withdraw a proposed fuel-efficiency concession for small petrol cars, as per a report by Reuters. The proposal forms part of the upcoming CAFE-III norms and grants lenient emission requirements to vehicles under 909 kg, under four metres in length, and powered by sub-1,200cc petrol engines.
According to the Reuters report, the manufacturers, sent formal submissions to the government stating that the concession would favour a narrow category of vehicles concentrated largely with Maruti Suzuki. The letters argue that this would create an uneven regulatory field and allow certain companies to achieve fleet-average emission compliance more easily due to their sales mix.
The upcoming CAFE-III framework will set the next phase of national fuel-efficiency and CO₂ targets for passenger vehicles. Under the draft circulated for industry consultation, qualifying small petrol cars would receive relaxed limits compared to the rest of the fleet.
Automakers opposing the provision said this undermines broader emission-reduction goals by lowering requirements for the category that accounts for a significant share of India's vehicle sales. The report notes that Maruti Suzuki, whose lineup features several models meeting the qualifying parameters, stands to benefit the most from the new small car emission norms under CAFE-III.
The letters also state that exemptions of this kind reduce incentives to invest in efficient internal-combustion technologies, hybrid systems and electric-vehicle programmes. Automakers highlighted that India's policy direction is centred on technology neutrality, and segment-specific relief contradicts that approach by providing an emission advantage to a limited set of vehicle types.
The letters also addressed long-term decarbonisation goals, stating that allowing lighter petrol vehicles to meet lower efficiency requirements would weaken the pace of industry-wide transition. Automakers argued that a uniform standard ensures all manufacturers follow similar pathways towards reduced CO₂ output, regardless of portfolio composition.
According to Reuters, the government has yet to issue any response to these letters from the manufacturers. The Ministry of Road Transport and Highways did not reply to the agency's queries. The CAFE-III framework is expected to be finalised ahead of its scheduled implementation window, and automakers have sought clarity to plan future compliance strategies and model development cycles.
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