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He said the plan to introduce a new vehicle sub-category based on weight could harm India’s progress towards clean and safe cars. He also said that the weight of the vehicle has increased due to safety regulations.
Earlier, Rajesh Jejurika, Executive Director and CEO (Auto and Farm Sector) Mahindra & Mahindra Ltd
had also expressed similar views.
The CAFE III norms are the next phase of India’s fuel-efficiency standards for passenger vehicles. They have set targets for the average CO₂ emissions produced by each automaker’s entire fleet, rather than individual models.
It aims to push car manufacturers towards lower emission technologies, better engines and better overall efficiency. CAFE III proposes updated limits, new compliance methods, and potential weight-based ranges that affect the calculation of these emissions targets.
The OEM said cars weighing up to 909 kg, engine capacity up to 1200 cc and length less than 4000 mm should not be given emission-norm relaxation.
He highlighted that Maruti Suzuki has more than 95% share in the market for cars up to 909 kg.
He said that if any CO₂ concessions were considered, they should be applied to all cars up to 1170 kg, which he described as the current industry average.
The companies argued that giving CO₂ reduction credits to internal-combustion vehicles, based only on weight and without actual CO₂-reduction steps, would conflict with the purpose of the corporate average fuel efficiency rules.
He said GST rules already classify small cars as those with engines less than 1200 cc, and added that creating a new small car sub-category under CAFE norms could impact long-term investment plans for manufacturing and supply chains.