Indian authorities are contemplating a relaxation of fuel efficiency norms for small cars, specifically those weighing under 1000 kg. This potential change is being considered, according to sources, due to advocacy from Suzuki, who have observed a decline in demand for their smaller vehicles amidst rising SUV popularity. A senior government official has indicated that the government is exploring ways to provide greater support for small car manufacturers. The current Corporate Average Fuel Efficiency (CAFE) norms in India link permissible carbon dioxide emissions to a vehicle’s weight for cars under 3,500 kg. The proposed relaxation would ease these limits for cars under 1,000 kg. This could alleviate pressure on manufacturers to sell a certain percentage of low-emission models, such as electric vehicles. Should the changes be implemented, Suzuki, with ten out of its seventeen current models weighing less than 1,000 kg, is expected to gain significant advantage. Suzuki’s 2024 sustainability report has emphasized the environmental benefits of its smaller cars, citing lower emissions and reduced material usage in their production. A meeting was held on June 17 to discuss the proposed changes, with representatives from Tata Motors, Mahindra & Mahindra, and Volkswagen in attendance. Sources suggest that any preferential treatment could be perceived as an unfair advantage for Maruti Suzuki.
