As the Indian government moves to sharply tighten automobile carbon dioxide (CO₂) emission standards while pursuing an exception only for small cars, major automakers including Hyundai Motor, Tata Motors and Mahindra & Mahindra are pushing back strongly, calling it "favoritism toward a specific corporations."
According to Reuters and other outlets on the 29th (local time), the Indian government is discussing a revision to lower the average carbon dioxide emission cap for passenger cars from 113g per kilometer to 91.7g. However, it is reportedly pursuing a separate plan to apply relaxed standards to gasoline vehicles that weigh 909 kilograms or less, measure 4 meters or less in length, and have engines under 1,200 cc.
The local industry says the easing measure favors Maruti Suzuki, whose lineup is overwhelmingly small cars. About 16% of Maruti Suzuki vehicles, which produce more than 95% of India's small cars, weigh under 909 kilograms, meaning they would face relatively less regulatory burden if the revision takes effect.
Hyundai Motor, Tata Motors and Mahindra recently sent successive letters to the government and related ministries, protesting that "if regulations are eased based on vehicle weight, it helps only one company, undermines fair competition and could run counter to India's goal of expanding electric vehicles." Hyundai Motor urged a policy review, saying that at a time when the global auto industry is adopting stricter fuel-efficiency and zero-emission standards, expanding exceptions for small cars could be seen as a step backward.
Maruti Suzuki, India's largest automaker, countered the favoritism controversy, saying, "Major markets such as Europe, the United States, China, Korea and Japan also have separate CO₂ regulations to protect small cars." In India, the world's No. 3 auto market, Hyundai Motor Group—which combines Hyundai Motor and Kia—has a market share in the 19% range this year, ranking second after Maruti Suzuki (No. 1). Attention is on how the tug-of-war between the government and industry over the design of the rules will affect India's overall strategies for eco-friendly cars and small cars.