Emission norms divides the auto industry

Indian car manufacturers are working towards a compromise on recommendations to the government regarding the next phase of Corporate Average Fuel Efficiency (CAFE 3) standards, following strong advocacy from

for relaxed emission rules for small cars amidst slow market growth. During a recent meeting of the Society of Indian Automobile Manufacturers (Siam) in New Delhi, industry members—including major players like Maruti Suzuki, , and —agreed to maintain their initial proposal submitted to the government last December, while also discussing an added proposal for possible exemptions for small cars and some light commercial vehicles. Maruti Suzuki highlighted the need for leniency in emission standards specifically for vehicles under 1,000kg, given their significant market share in the small and compact segment. Other automakers initially opposed special treatment for Maruti but later accepted the formation of an addendum to the original December proposal, to be reviewed and potentially adopted if it gains unanimous support. Siam, which operates by consensus, will now have its chief executive council evaluate the technical aspects, while its members review the proposed addendum before finalizing their input. Previously, the industry submitted a joint appeal cautioning that the Bureau of Energy Efficiency’s proposed standards are excessively stringent and could threaten the sector’s long-term viability.