As per a recent update, it has been revealed that Indian authorities are pushing for fuel efficiency norms relaxation for small cars weighing under 1000 kg. The new change has been proffered by Suzuki, who have witnessed a dwindling demand for their small vehicles ever since the SUV demands have risen up, as reported by a Reuters Report.
The report further elucidates that a senior government official has told Reuters that there should be more benefit for the small cars. The concern Suzuki has raised pertains to how the declining sales of affordable models could impact the broader passenger vehicle segment.
Under our current Corporate Average Fuel Efficiency norms, India currently links the quantity of Permissible Carbon Dioxide emissions to vehicle’s weight for all cars weighing less than 3,500 Kg.
Overall Relief For Manufacturers
The relief that is being asked for, would help the corporations relax such limits for cars weighing less than 1,000 kg. To meet these previously set norms, carmakers have to sell a certain percentage of Low-emission models, that are mainly electric models. Easing off these limits would help the brands with less pressure to electrify existing models or launch new EV’s which would in turn aid the manufacturers that have a larger share of such models in their lineup.
If such a relaxation is established it would definitely help Suzuki, whose line up consists of 10 of its current units out of a total of 17 weighing less than a 1,000 kg. The report further details that Suzuki, in 2024 sustainability report had detailed that selling cars was good for the environment not because of their lower emissions but also because fewer materials are needed to manufacture them.
It was in a closed door meeting held on June 17, in which the ministry held a discussion regarding the changes asked for. The brands involved in the communication included Tata Motors, Mahindra& Mahindra and Volkswagen. Sources that reported to Reuters further detailed that any preferential treatment would be an departure from the previously agreed consensus and could be received as an effort to provide Maruti Suzuki with an unfair advantage in the market.
The concerns for an unfair advantage being established to aid Suzuki are presented by the report in a starkly evident manner.
