Archive · 7 Nov 2025
Maruti Suzuki Pushes for Small Car Emission Relief, Backs Commercial Vehicles
Imagine cars and trucks need to be cleaner for the environment.
The government has new rules, called CAFE III, that make it harder for car companies to meet these cleanliness goals starting around 2027.
Big car companies in India are trying to agree on how to respond to these rules.
Maruti Suzuki, which makes many small cars, wrote a letter saying that the new rules will make small cars too expensive for people who are just starting to buy a car.
They said it might even make them stop making small cars!
They asked for special help for small cars, like a little bit of an easier target for pollution.
Interestingly, Maruti Suzuki also said they would now help other companies, like Tata Motors and Mahindra & Mahindra, ask for easier rules for small trucks (commercial vehicles) because those trucks help small businesses and people who don't have a lot of money.
However, Tata Motors disagrees with giving small cars any special treatment, saying everyone needs to work towards a cleaner planet.
Because these companies can't agree on what to do about small cars, the main car industry group (Siam) can't give one single answer to the government yet.
Maruti Suzuki is urging for relief from stringent CAFE III emission norms for small cars, citing affordability concerns for entry-level buyers and potential discontinuation of these models.
The company, led by MD Hisashi Takeuchi, is also offering support for emission norm relief for small commercial vehicles (SCVs), a segment dominated by Tata Motors and Mahindra & Mahindra.
Maruti Suzuki invoked the legacies of Ratan Tata and Osamu Suzuki to emphasize the importance of affordable vehicles for the masses.
Tata Motors has expressed opposition to any special dispensation for small cars, advocating for adherence to decarbonization goals.
Disagreements between Maruti Suzuki and Tata Motors over emission norms for small cars and SCVs have delayed a unified response from the industry lobby Siam to the government.
Maruti Suzuki argues that the proposed emission targets disproportionately penalize small cars, requiring a larger reduction in CO2 emissions compared to larger vehicles.
- Who
- Maruti Suzuki's Managing Director, Hisashi Takeuchi; Tata Motors (Shailesh Chandra, President of Siam); Mahindra & Mahindra; and the Society of Indian Automobile Manufacturers (Siam).
- What
- Maruti Suzuki, through a letter, is advocating for leniency on upcoming stringent emission norms (CAFE III) for small cars, while offering support for similar relief for small commercial vehicles (SCVs), a stance that has created division within the industry lobby Siam.
- When
- The letter was dated October 17th. The CAFE III norms were released on September 25th, with an expected industry response within 21 days. The norms are expected to be implemented after April 2027.
- Where
- India
- Why
- Maruti Suzuki believes that stricter emission norms for small cars will make them unaffordable for entry-level buyers, potentially leading to their discontinuation. They also want to support affordability for small businesses using SCVs. The differing views on these issues have prevented Siam from submitting a unified response to the government.
Advocates for Small Car and SCV Emission Relief
Opponents of Small Car Emission Relief
Small Commercial Vehicles (SCVs)
Advocates for Small Car and SCV Emission Relief
Maruti Suzuki, influenced by Tata Motors and Mahindra & Mahindra, now supports seeking emission relief for SCVs, citing their service to less privileged segments and the risk of increased costs impacting affordability.
Opponents of Small Car Emission Relief
While the article notes Maruti Suzuki's change of heart, the initial push for SCV relief was led by Tata Motors and Mahindra & Mahindra, who dominate this segment.
Small Cars
Advocates for Small Car and SCV Emission Relief
Maruti Suzuki argues that stringent CAFE III norms for small cars will make them unaffordable for entry-level buyers, potentially leading to discontinuation. They invoke Ratan Tata and Osamu Suzuki's legacy of creating affordable vehicles for the masses and propose exemptions or relief.
Opponents of Small Car Emission Relief
Tata Motors opposes any special dispensation for small cars, believing it would undermine decarbonization goals and create unfair competition. They contend that all vehicles must adhere to stricter targets.
- Key Proponent for Small Cars
- Maruti Suzuki (Hisashi Takeuchi)
- Key Opponent for Small Cars
- Tata Motors
- Key Supporter for SCVs
- Maruti Suzuki (previously opposed, now supportive)
- Dominant SCV Manufacturers
- Mahindra & Mahindra (45% share), Tata Motors (32% share)
- Small Car Market Share (FY25)
- Maruti Suzuki held nearly two-thirds of the ~1 million unit market.
- Norms in Question
- Corporate Average Fuel Efficiency III (CAFE III)
- Proposed Targets
- Stricter emission targets for vehicles, with a disproportionately larger tightening for small cars compared to larger ones.
