Small car concession scrapped under new norms, Pg15

Key Highlights:

• India scrapped a planned concession for small cars in upcoming fuel-efficiency rules following objections from automakers like Tata Motors and Mahindra & Mahindra.
• A previous draft proposed leniency for petrol cars weighing 909 kg or less, which was perceived to favor Maruti Suzuki, controlling 95% of India's small-car market.
• The Power Ministry removed the exemption and tightened parameters to push automakers towards electric and hybrid car sales.
• The new rules, effective from April 2027 for five years, aim to level the playing field and deliver real-world efficiency gains.

Detailed Insights:

• The initial proposal was viewed as unfairly benefiting Maruti Suzuki due to its dominance in the small car segment.
• The updated regulations aim to reduce over-compensation based on vehicle weight, promoting fair competition between manufacturers of light and heavy vehicles.
• These changes are designed to achieve significant reductions in emissions, reflecting a stricter approach to environmental standards.
• Transport accounts for approximately 12% of India's energy consumption, with passenger vehicles contributing nearly 90% of transport-related emissions.
• Corporate Average Fuel Efficiency (CAFE) norms, updated every five years, encourage automakers to adopt cleaner technologies like electrification and compressed natural gas.
• The new rules will significantly influence automakers' investment strategies in product development and power-train technologies.

Key Concepts Involved:

• Fuel Efficiency: The measure of how far a vehicle can travel on a given amount of fuel.
• Corporate Average Fuel Efficiency (CAFE) norms: Regulations that dictate permissible CO2 emissions across a manufacturer's fleet.
• Electric and Hybrid Cars: Vehicles that use electric motors, either alone or in combination with traditional engines, to reduce emissions.