New Delhi: India has dropped a proposed concession for small cars in its upcoming fuel-efficiency norms after automakers, including Tata Motors & Mahindra, argued it would disproportionately benefit a single manufacturer, according to a government document.
A September draft had suggested leniency for petrol cars weighing 909 kg or less, a move seen as favouring Maruti Suzuki, which dominates the segment. The Power Ministry has now removed the exemption and tightened other parameters in the latest draft, increasing pressure on automakers to boost EVs and hybrid vehicle sales, Reuters reported.
The revised rules curb over-compensation linked to vehicle weight, seek to level the playing field between light- and heavy-fleet manufacturers, and introduce a steeper emissions-reduction pathway aimed at real-world efficiency gains. The ministry did not respond to requests for comment.
Transport accounts for about 12% of India’s energy use and is a major source of petroleum imports and carbon emissions, with passenger vehicles contributing nearly 90% of sectoral emissions. Corporate Average Fuel Efficiency (CAFE) norms, updated every five years, set fleet-wide CO2 limits and encourage cleaner technologies.
The rules will apply from April 2027 for five years, shaping auto cos’ product, powertrain plans. Heavier fleets will face tighter efficiency norms, while credits will reward EV & hybrid sales and allow pooling, with penalties up to $550 for non-compliance. Agencies