Hyundai, Tata want India to drop fuel emission concessions seen benefiting Suzuki: Report

India’s biggest automakers, including Tata Motors and Hyundai, want the government to scrap weight-based emissions concessions for small cars under planned new efficiency rules, saying the move would benefit only one company. Reuters to show.

Tata, Mahindra & Mahindra, JSW MG Motor and Hyundai are concerned about the risk of a weight-based relaxation helping a single player while hurting India’s EV targets, according to their individual letters to the government.

They didn’t name the player, but industry data shows and three auto executives said Reuters He said the main beneficiary will be Maruti Suzuki.

Maruti, India’s largest small car dealer, said: Reuters He said global auto markets such as Europe, the US, China, Korea and Japan all have some provisions in their emissions regulations to protect “very small cars”.

‘Limited potential for efficiency improvements’

As per India’s current Corporate Average Fuel Efficiency norms, the permissible amount of carbon dioxide emissions is applicable for all passenger cars weighing below 3,500 kg (7,716 lb).

The new rules propose reducing average CO2 emissions to 91.7 grams/km from the previous target of 113 grams/km. This will make it harder for small cars to hit the mark compared to large SUVs, forcing companies to sell more EVs.

In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, less than four meters in length and with an engine capacity of 1200 cc or less as they offer “limited potential for efficiency improvements”.

This has created a sharp divide between India’s leading EV-focused companies and Maruti, where 16% of its sales come from cars weighing under 909 kg, and has caused delays in finalizing the regulation, which is vital for automakers to plan their future product portfolios and investments in powertrain technology.

Three company executives told Reuters The 909 kg threshold was arbitrary and not in line with any global standards; The move was allegedly only benefiting Maruti Suzuki.

In a letter to India’s Ministry of Energy, which drafted the rules, Mahindra requested the exclusion of a “special category” or definitions based on size or weight.

“(This) could have negative impacts in terms of the country’s progress towards safer, cleaner cars and could change the level playing field for industry players,” he said.

Risks to industry stability and customers

In its letter, Hyundai told the industry ministry that the exemption could be perceived as a step back internationally at a time when global markets are approaching stricter fuel efficiency and zero emissions standards.

“Since future investments and technology rollouts are planned based on established norms, sudden policy changes in favor of a particular segment risk damaging industry stability and customer interests,” Hyundai said in a statement. Reuters.

JSW MG Motor, without naming anyone, said that more than 95% of cars weighing less than 909 kg come from a single automaker.

“A relaxation limited to this weight range would disproportionately benefit one manufacturer,” he said in his Nov. 21 letter to the road transport ministry.

Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India’s ministries of energy, transport and industry did not respond to the requests.

Maruti said Reuters Small cars consume much less fuel and emit less carbon dioxide than large cars; so having this “safety” will help with both CO2 reduction and fuel savings.

About 16% of its sales in India are cars weighing less than 909 kg, but demand is falling as buyers opt for larger SUVs.