New Delhi: India’s major carmakers, including Tata Motors, Hyundai, Mahindra & Mahindra, and JSW MG Motor, are asking the government to remove a rule that offers extra relaxation to small petrol cars. They say this move would mainly benefit one company and could slow down the country’s electric vehicle plans. The new emission rules aim to bring the CO₂ limit down from 113 g/km to 91.7 g/km.
However, small petrol cars weighing 909 kg or less, under four meters long, and with engines up to 1,200 cc have been given special leniency, with officials saying these cars have “limited potential for efficiency improvements”. Even though no brand was directly named, industry data and three auto executives told Reuters that Maruti Suzuki would gain the most. Around 16% of its sales come from cars below the 909 kg mark, and the company already dominates India’s small-car segment.
Companies Say Rule Helps Only One Player
In letters sent to different ministries, the opposing companies raised several concerns. Mahindra said the rule should not include any “special category” based on size or weight. The company wrote “(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.”
Hyundai warned the government that such an exemption could harm India’s global image. It said: “Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned based on established norms.”
JSW MG Motor wrote to the road transport ministry on 21 November, pointing out that most cars under 909 kg come from one brand. Its letter stated: “A relaxation restricted to this weight band would disproportionately benefit one manufacturer.”
Three executives also told Reuters that the 909 kg cut-off is random and does not match any international benchmark.
Maruti Defends Rule, Says Small Cars Need Protection
Maruti Suzuki responded by defending the relaxation. The company told Reuters that many global markets, including Europe, the US, China, Korea, and Japan, have rules that protect “very small cars.” Maruti said small cars naturally use less fuel and release less CO2, so a safeguard for them “will help both CO2 reduction and fuel saving.” The company also said that demand for small cars is already falling because more buyers now prefer bigger SUVs.
Rule Delay Affects Industry Planning
Because of this dispute, the final approval of the new emission rules has been delayed. Automakers say they need clarity soon so they can plan future investments and decide which engines or electric technologies to develop.
Right now, India’s emissions rules apply equally to all passenger cars under 3,500 kg. The new rules would make it tougher for small cars to meet targets compared to large SUVs. This may push companies to sell more electric vehicles.
Government ministries and some companies mentioned in the report did not reply to Reuters’ questions.