Tata Motors Passenger Vehicles (TMPV) on Friday questioned proposals to alter the definition of small cars, particularly attempts to introduce weight as a criterion. Shailesh Chandra, MD & CEO, said there is “absolutely no justification” for changing India’s corporate average fuel efficiency (CAFE) framework or giving concessions to any category of cars.
Speaking on a post-earnings media call, Chandra said the original intent of CAFE norms was to “drive OEMs towards greener technologies at a fleet or portfolio level,” without set targets for individual cars or segments.
“OEMs are free to manage their portfolio with appropriate green technologies and meet the target,” he said.
The comments from Tata Motors follow draft rules issued by the Bureau of Energy Efficiency (BEE) last month. The proposal gives cars shorter than four metres, weighing less than 909 kg, and powered by sub-1200 cc engines a 3 gram advantage while calculating carbon dioxide (COâ‚‚) emissions under the proposed Cafe 3 regulations.
While it does not grant the emissions exemption sought by Maruti Suzuki, which had been lobbying for the small cars to be treated differently under the norms, it does offer an edge to makers of lighter small cars..
Chandra noted that the existing sub-4-metre definition of small cars, reaffirmed under GST 2.0 based on length and engine capacity, remains appropriate. By this definition, Tata Motors is the second-largest producer of small cars in India, with over 85% of its sales coming from this segment.
“We have absolutely no concerns in meeting CAFE norms…and we see absolutely no justification for any special concession,” he said.
Chandra criticised efforts to classify small cars by weight, calling it “an arbitrary criteria” that could compromise safety. “Encouraging lighter vehicles will undermine the significant progress the industry has made in including safety standards and protection,” he said, pointing out that cars below 900-909 kg are BNCAP rated.
He also challenged claims that lighter cars are inherently more affordable, saying several models close to the proposed weight limit retail at around ₹10 lakh and could qualify simply by removing reinforcements.
