Automakers Push Back on India’s Ambitious Emission Standards

ENA Sectors 2025-07-01 16:46:56 New Delhi, Jul 1 (KNN) Indias automakers are challenging the governments proposal to drastically reduce vehicle emissions by 33 per cent starting in 2027—over double the pace of the current target—calling it overly ambitious and economically risky. The Society of Indian Automobile Manufacturers (SIAM) warns that the stringent targets, part of the upcoming Corporate Average Fuel Efficiency (CAFE) Phase III norms, could trigger billions of rupees in penalties, reported Business Standard. They argue such aggressive regulation may undermine investment in Indias Rs 137-billion auto sector—a key manufacturing engine. A key concern is the distinct treatment proposed for lighter cars versus heavier vehicles. While this split could potentially favour small-car makers like Maruti Suzuki—already investing in CNG and hybrid models—the industry contends it might skew the market and disrupt regulatory coherence. Led by Maruti and Toyota Kirloskar, manufacturers are requesting that incentivisation for hybrids, ethanol blends, and gas-powered vehicles match that provided to electric vehicles—through emission credit systems. SIAM is also proposing a more gradual trajectory: a 15% emissions reduction instead of the proposed 33%, along with a 14.3% adjustment in emissions calculation for E20 fuel (20% ethanol blend) and similar recognition for biogas variants. They have urged the government to adopt a carbon trading mechanism, enabling automakers that exceed standards to sell excess credits. Memories of recent regulatory pushback in Europe—where even well-developed EV infrastructure hasnt aligned with overly aggressive timelines—underline SIAMs caution. They warn that India should follow a more measured, realistic path . A key consultation meeting is scheduled for July 2 in New Delhi between industry representatives and Transport Minister Nitin Gadkari. This debate comes amid broader policy moves, including discussion around ending petrol and diesel vehicle sales by 2040—an idea SIAM warns could destabilise investment and growth. (KNN Bureau) 42650 https://knnindia.co.in/news/newsdetails/sectors/automakers-push-back-on-indias-ambitious-emission-standards 2025-07-01 16:46:56 knnindia.co.in Automakers Push Back on India’s Ambitious Emission Standards