Hyundai and Tata Motors Urge India to Scrap Fuel Emission Concessions Favoring Maruti Suzuki

Hyundai Motor Company and Tata Motors Limited, among India’s top car manufacturers, have formally urged the Indian government to eliminate a draft fuel emission concession that provides leniency to petrol cars weighing 909 kg or less, measuring less than four meters, with an engine capacity below 1,200 cc. This concession, seen as disproportionately advantageous to Maruti Suzuki India Limited—the dominant small car maker in India—has caused a rift in the auto industry.

These manufacturers warn that such a policy distorts competition, rewards a single segment, and reverses years of progress toward cleaner fuel standards. The concession may dilute incentives for investing in electric vehicles and advanced emission technologies, endangering India’s commitment to stricter Corporate Average Fuel Efficiency (CAFE) standards, which aim to cut fleet-wide CO2 emissions from 113 g/km to 91.7 g/km.

Hyundai and Tata highlight that uniform emission norms without size or weight exemptions are essential for a level playing field, fostering innovation and accelerating India’s transition to sustainable mobility. The debate over this policy has delayed finalization of emission standards critical for industry planning.

Key Highlights:

Hyundai Motor Company and Tata Motors urge removal of weight-based emission concessions

Concession favors petrol cars under 909 kg, benefiting Maruti Suzuki’s small car segment

New CAFE norms aim to reduce fleet CO2 emissions to 91.7 g/km from 113 g/km

Industry warns policy may hinder electric vehicle adoption and clean tech investments

Calls for uniform, technology-neutral emission standards for all automakers

Delay in finalizing emission standards affects future product strategies and investments

Source: Reuters, Economic Times, Business Standard, Drivespark