Maruti Suzuki, which saw a 37 per cent increase in sales of its small cars – Alto, S-Presso, Celerio, WagonR and K10 last month – argued that the weight band is not “arbitrary”.The debate over whether small cars should receive a relaxation in carbon dioxide (CO2) emission limits has intensified, with Maruti Suzuki India warning that without this relaxation, the proposed Corporate Average Fuel Efficiency (CAFE) targets become “unscientific” for compact models.
“The problem is not in the cars. The problem is in the targets. They become really unscientific,” said Rahul Bharti, Senior Executive Officer – Corporate Affairs, during the company’s post-earnings call.
The auto industry, which is witnessing strong bookings and retail demand in November, is increasingly divided as the government prepares to finalise the next phase of CAFE regulations.
The Bureau of Energy Efficiency (BEE) in September issued the draft CAFE 3 norms, which will be applicable for five years starting 2027-28.
Referring to the draft CAFE-3 norms, Bharti clarified that the revised 909 kg weight definition was introduced by the regulator, not proposed by Maruti Suzuki. In the latest draft, cars up to 909 kg are allowed a 3-gram relaxation in CO2 limits.
Reports suggest that major OEMs such as Tata Motors and Mahindra & Mahindra–whose portfolios are dominated by heavier SUVs– have formally opposed weight-based carve-outs, arguing they offer an ‘unfair advantage’ to a manufacturer with a large sub-909 kg portfolio.
Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said the intent of the CAFE framework is to push OEMs towards greener technologies across their fleets. “OEMs are free to manage their portfolio with appropriate green technologies and meet the target,” he had said during the company’s post-earnings interaction with the media.
Maruti Suzuki, which saw a 37 per cent increase in sales of its small cars – Alto, S-Presso, Celerio, WagonR and K10 last month – argued that the weight band is not “arbitrary”.
Bharti warned that unrealistic targets – including waiving the weight criterion – could force the discontinuation of small, low-emission models.
“Just to meet CAFE regulation, a small car which produces the lowest absolute CO2 would have to be discontinued. That we don’t want. This is why we want to keep the targets realistic – tough but realistic,” he said.
Maruti Suzuki also stressed that weight-based relaxations are common globally, citing China, Europe, the US, Japan and Korea. “About ninety per cent of the global automobile market provides structured relaxations for small cars,” Bharti added.
