Archive · 24 Nov 2025
India's Auto Industry Divided Over Small Car Emission Exemption
India's auto industry is split over a proposal to give small cars a break on fuel emission rules.
The rule, called CAFE, sets limits on how much carbon dioxide cars can emit.
The proposal would give smaller, lighter cars a bit of a discount on these limits.
Most car companies, 15 out of 19, are against this idea.
They voted 'no' in a meeting.
But two companies, Maruti Suzuki and Renault, said 'yes'.
Another company, Toyota, wanted everyone to agree.
The rule change is important because right now, smaller cars have a harder time meeting the limits, even though they emit less pollution.
The proposal aims to fix this.
The final decision will be made by the government.
A deep split emerged within India's auto industry over the proposed CAFE exemption for small cars, with only Maruti Suzuki and Renault backing the move.
The final vote was taken at the CEOs Council meeting of the Society of Indian Automobile Manufacturers (SIAM) on November 7.
The proposal allows petrol vehicles weighing up to 909 kg, with engine capacity below 1,200cc and length under 4,000mm, an additional 3g/km deduction in their declared carbon dioxide emissions.
15 carmakers, including BMW, Hyundai, Mahindra & Mahindra, Tata Motors, and Volvo, voted 'no' to the proposal, while Maruti Suzuki and Renault voted 'yes'.
Toyota remained neutral, stating it would go with whatever consensus the other carmakers reached.
- Who
- India's auto industry, including Maruti Suzuki, Renault, and 15 other carmakers
- What
- A vote on the proposal to allow a weight-based exemption for small cars under the CAFE emission norms
- When
- November 7, 2023
- Where
- At the CEOs Council meeting of the Society of Indian Automobile Manufacturers (SIAM)
- Why
- To address the structural bias in the current CAFE framework that penalises lighter vehicles with stringent carbon dioxide targets
- Date of Vote
- November 7, 2023
- Organisation
- Society of Indian Automobile Manufacturers (SIAM)
- Proposal
- Weight-based exemption for small cars under CAFE norms
- Vehicles Eligible for Exemption
- Petrol vehicles weighing up to 909 kg, with engine capacity below 1,200cc and length under 4,000mm
- Additional CO2 Deduction
- 3g/km
- Carmakers Supporting Exemption
- Maruti Suzuki and Renault
- Carmakers Opposing Exemption
- 15 carmakers including BMW, Hyundai, Mahindra & Mahindra, Tata Motors, and Volvo
- Effective Date of CAFE-3 and CAFE-4 Norms
- April 2027