Tata, Mahindra & Mahindra, JSW MG Motor and Hyundai are concerned that a weight-based relief risks hurting India’s EV goals while helping a single player, according to individual letters they wrote to the government.
India’s biggest carmakers including Tata Motors and Hyundai want the government to scrap a weight-based emission concession for small cars under planned new efficiency rules, a move they say would benefit just one company, letters seen by Reuters show.
Tata, Mahindra & Mahindra, JSW MG Motor and Hyundai are concerned that a weight-based relief risks hurting India’s EV goals while helping a single player, according to individual letters they wrote to the government.
They did not name the player but industry data shows and three auto executives told Reuters that Maruti Suzuki would be the main beneficiary.
Maruti, the biggest seller of small cars in India, told Reuters that global car markets like Europe, the U.S., China, Korea and Japan all had some provisions in their emission regulations to protect the “very small cars”.
‘LIMITED POTENTIAL FOR EFFICIENCY IMPROVEMENTS’
Under India’s current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions applies to all passenger cars weighing less than 3,500 kg (7,716 lb).
The new rules propose tightening average CO2 emissions to 91.7 grams/km from an earlier target of 113 grams/km. This will make it tougher for small cars to meet the target compared with large SUVs, pushing companies to sell more EVs.
In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, measuring under four meters in length and with engine capacity of 1200 cc or below as they offer “limited potential for efficiency improvements”.
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.
