Tata and Hyundai Urge India to Remove Emission Concession That Favors Small Cars

Tata and Hyundai Urge India to Remove Emission Concession That Favors Small Cars

Post by : Saif

A major debate has opened up inside India’s car industry as top automakers like Tata Motors, Hyundai, Mahindra & Mahindra, and JSW MG Motor have urged the government to cancel a new weight-based emission concession for small cars. These companies say the planned rule will mostly help one company—Maruti Suzuki—while possibly slowing India’s progress toward electric vehicles.

The dispute comes at a time when India is preparing tighter fuel efficiency rules for passenger vehicles. These new rules will cut the acceptable average carbon dioxide (CO2) emissions from 113 grams per km to 91.7 grams per km. Automakers will need to improve their technology or sell more electric vehicles to meet this target.

However, the government’s draft rules include a special relaxation for petrol cars that weigh 909 kg or less, are shorter than 4 meters, and have engines no bigger than 1200 cc. Officials say these small cars have “limited potential for efficiency improvements,” which means they might struggle to meet the tougher emission targets without help.

This part of the proposal has divided India’s auto industry. Tata, Hyundai, Mahindra, and JSW MG Motor argue that the 909-kg cutoff has no international basis and gives an unfair advantage to companies that sell lighter cars. According to industry data and several executives, Maruti Suzuki—India’s largest seller of small cars—would be the biggest winner from this rule.

Letters reviewed by Reuters show that these companies want the concession removed completely. They say the rule risks damaging India’s push for cleaner vehicles, especially electric cars. Hyundai wrote that such an exemption could make India look like it is moving backward while the world moves toward strict zero-emission standards. It also warned that sudden changes in policy could hurt customer trust and affect future investments.

Mahindra told the government that creating special categories based on size or weight could harm the goal of building safer and cleaner cars in India. JSW MG Motor noted that more than 95% of cars under the 909-kg limit come from a single manufacturer, suggesting that the benefit is not being shared across the industry.

Government ministries did not respond to Reuters’ requests for comments. The companies that wrote the letters also did not comment further.

Maruti Suzuki, however, defended the proposal. It said many global markets such as Europe, the United States, China, Korea, and Japan have similar rules to protect very small cars. According to Maruti, small cars not only use less fuel but also produce far fewer emissions than larger vehicles like SUVs. The company said such a safeguard helps both the environment and customers who prefer affordable, fuel-efficient cars.

Even though about 16% of Maruti’s sales come from cars weighing less than 909 kg, demand for these smaller models has been falling as Indian buyers increasingly choose bigger SUVs.

The disagreement shows a fundamental divide in India’s fast-changing car market. On one side are companies that are pushing electric and larger vehicles. On the other side are automakers focused on small cars that remain important for many middle-class families.

With the new emissions policy still under discussion, the final decision will play a key role in shaping future investments and the direction of India’s auto industry for years to come.

Nov. 29, 2025 6:31 p.m. 1945

#trending #latest #IndiaAutoNews #EmissionRules #TataMotors #Hyundai #MarutiSuzuki #EVIndia #AutoPolicy #CleanEnergy

SpaceX Targets Next Week for Starship Launch After Last-Minute Abort Sends Shares Lower
July 18, 2026 12:41 p.m.
SpaceX plans another Starship launch attempt as early as next week after a last-second abort. The setback triggered a sharp fall in the company's share price
Read More
Boeing Maintains 20-Year Aircraft Demand Forecast Despite Iran War and Market Uncertainty
July 18, 2026 10:42 a.m.
Boeing reaffirmed its forecast for 43,625 aircraft deliveries by 2045, saying long-term aviation demand remains strong despite the Iran war, trade tensions and
Read More
Extreme Heat Threatens French Gas Plant as High Sea Temperatures Strain Power Supply
July 17, 2026 5:31 p.m.
High Mediterranean Sea temperatures have put France's Martigues gas power plant at risk of an outage, adding pressure to an energy system already facing reduced
Read More
PM Modi Flags Off India's First Hydrogen Train with Advanced Heat and Smoke Detection System
July 17, 2026 1:23 p.m.
Prime Minister Narendra Modi flags off India's first hydrogen-powered train on the Jind-Sonipat route, featuring advanced hydrogen leak, heat, flame and smoke d
Read More
Volvo Cars Reports Lower Q2 Profit, Pins Recovery Hopes on EX60 Electric SUV
July 17, 2026 12:44 p.m.
Volvo Cars posted a lower second-quarter profit as it looks to boost earnings through the launch of the new EX60 electric SUV and stronger sales
Read More
Boeing Nears FAA Approval for 737 MAX Anti-Ice System Fix, Clearing Path for MAX 7 and MAX 10 Deliveries
July 17, 2026 12:08 p.m.
Boeing is close to FAA certification of its 737 MAX anti-ice system fix, paving the way for long-delayed MAX 7 and MAX 10 aircraft deliveries
Read More
Iran War and Rising Fuel Prices Push European Airlines Toward Industry Shakeout
July 17, 2026 10:46 a.m.
Rising fuel prices linked to the Iran war are putting financial pressure on European airlines, increasing the risk of mergers, restructurings, and bankruptcies
Read More
India Bars Deployment of Seafarers on Strait of Hormuz Routes Amid Rising Middle East Conflict
July 16, 2026 4:02 p.m.
India has directed shipping companies not to deploy Indian seafarers on vessels transiting the Strait of Hormuz, citing growing security risks amid escalating c
Read More
Airbus and Boeing Turn to Giant Antonov An-124 Aircraft to Ease Supply Chain Delays
July 16, 2026 12:59 p.m.
Airbus and Boeing are using the Antonov An-124 cargo aircraft to transport critical aircraft parts, helping reduce supply chain delays affecting commercial and
Read More
Sponsored

Trending News