India’s leading automakers have urged the government to withdraw a proposed relaxation that grants leniency to small petrol cars in upcoming CO₂ emission norms, warning that the provision would distort competition and hinder the country’s electric vehicle transition.
The new rules seek to lower fleet-average CO₂ emissions from 113 g/km to 91.7 g/km. Cars weighing 909 kg or less, under four meters long, and powered by petrol engines up to 1,200 cc have been given special concessions, with officials arguing that such models have ‘limited potential for efficiency improvements.’
While the government did not name any specific brand, industry data and three senior auto executives told Reuters that Maruti Suzuki would benefit the most, as about 16% of its sales come from vehicles below the 909 kg threshold and the company already dominates India’s small-car market.
Automakers warn of unfair advantage
In letters to various ministries, companies including Tata Motors, Hyundai, Mahindra & Mahindra, and JSW MG Motor challenged the exemption.
Mahindra wrote that no “special category” should be created based on weight or size, saying such a carve-out “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 cautioned that the move could damage India’s global reputation, stating that “abrupt policy changes favoring 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, in a letter dated 21 November to the road transport ministry, noted that cars under 909 kg come “mostly from one brand”. The company said that limiting relaxation to this band “would disproportionately benefit one manufacturer”. Executives also said the 909 kg cut-off is arbitrary and not aligned with any international benchmark.
Maruti defends policy, says small cars require support
Maruti Suzuki defended the proposed relaxation, telling Reuters that several global markets, including Europe, the United States, China, Korea, and Japan, provide regulatory protection for very small cars.
The company said these vehicles inherently consume less fuel and emit less CO₂, and argued that safeguarding them “will help both CO₂ reduction and fuel saving”. It added that demand for small cars has been declining as consumer preference shifts toward larger SUVs.
Emission rule delay impacts long-term planning
The dispute has delayed final approval of the new emission framework. Automakers say rapid clarity is essential, as investment decisions and future powertrain strategies depend on the regulatory timeline.
India’s current emission norms apply uniformly to all passenger vehicles under 3,500 kg. Under the new system, smaller cars would face tougher compliance requirements relative to bigger SUVs, which could accelerate the industry’s shift toward electric models.
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