Automotive companies opposing suggested changes in the definition of small cars have warned that the proposed weight-based criteria for corporate average fuel economy (CAFÉ) standards will encourage manufacturers to sell lighter but not necessarily more affordable vehicles.
They also argue that if CAFÉ standards shift from the current footprint-based system to a weight-based system, lighter vehicles may end up with more lenient fuel targets, while heavier vehicles face much stricter ones.
The emission norms, which come into effect from April 1, 2027, have divided the industry over the way small cars are defined.
While the finance ministry defines such cars on the basis on their length and engine size, the Bureau of Energy Efficiency (BEE), which is under the ministry of power, has proposed weight-based relaxation for smaller cars.
Maruti Suzuki, Honda and Renault have backed BEE’s draft norms but Tata Motors, Mahindra & Mahindra, Hyundai and JSW MG Motor are opposed it.
BEE defines small cars as petrol vehicles with an unladen mass of up to 909kg, an engine capacity not exceeding 1200cc and length not more than 4 meters.
While there are several in India that meet the engine size and length conditions, others do not meet the weight criteria. Many such popular models weigh around 925-960kg.
Carmakers fear that if the BEE’s proposed weight-based draft for CAFÉ norms are approved by the government, auto companies will prioritise vehicle weight reduction to avoid penalties prescribed under the new standards.
“If there are cars which are around 950kgs, it won’t be difficult to cut those extra kilos and get them to meet 909kg criteria,” a senior executive with one of India’s top four carmakers, who is opposing the weight-based definition, said.
Market leader Maruti Suzuki has been pushing for adoption of weight-based definition. It has a number of sub-909 kg cars including Wagon R, Celerio, Alto and even the Nexa-sold Ignis.
Maruti’s best-selling brands Baleno and Swift have a kerb weight of 910kg and 920kg.
Industry executives point out that lightweight does not always mean low-cost — several sub-909 kg vehicles retail at close to Rs 10 lakh.
According to an industry executive, no car below 909 kg meets the Bharat New Car Assessment Programme (BNCAP) safety rating, and encouraging lighter cars could undermine safety gains achieved over the past decade.
“It is essentially just one company against the rest. The regulations cannot be made for the benefit of just that one company,” said another senior executive from the top four.
The Society of Indian Automobile Manufacturers (SIAM), the industry’s apex lobby body, was asked by BEE to submit its inputs on weight-based CAFÉ 3 draft proposal. SIAM informed BEE that there was no consensus among its members.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
