Fuel efficiency norms for small cars split industry

NEW DELHI: The deep differences in the Indian car industry over proposed relaxations in CO2 emissions limits in the new CAFE norms, which are to kick in from April 2027, are out in open with Maruti Suzuki, seen to be a major gainer, accusing "makers of some large gas guzzlers" of spreading "false narratives... (and) incorrect facts".

The issue stems from the draft Corporate Average Fuel Efficiency (CAFE) 3 norms announced by the Bureau of Energy Efficiency (BEE), which had a proposal for creation of a new mini light-weight category that gets enhanced relaxations in permissible CO2 emissions per km. This category, which does not exist today, and will have almost 95% of cars just from Maruti within its ambit, if finalised, is defined as cars with weight less than 909 kgs, measuring under four meters in length, and with engine capacity of 1,200cc or below. The draft rules also give them a 3% relaxation in the mandated CO2 emission targets.

The proposed norms have been criticised by a large section of the industry, including homegrown Mahindra & Mahindra, Tata Motors, Korean Hyundai and Kia, German Volkswagen, and JSW MG Motor. Maruti is pushing the case along with Toyota, Honda and Renault (that sells the Kwid mini).

Those opposing the measure have written to govt, and even had face-to-face meetings with top officials, alleging that fixation of a new 909 kg weight category is "arbitrary" and against global standards, and benefits only Maruti. "(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," one of the carmakers said, pointing that light-weight cars will be unsafe for users, and will also go against govt's push to electric mobility (where batteries lead to higher weight for cars).

Maruti on Monday hit back. "Some incorrect facts and narratives are being pushed in a very irresponsible manner by the makers of some large gas-guzzlers to take away attention from their large gas-guzzlers," said Maruti Suzuki senior executive officer Rahul Bharti, while claiming that relaxations for mini cars are also being given in markets such as China, Korea, and Europe (though the average car weight in these countries is around 1,100 kgs).

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