New Delhi: The most important question arising from the push, predominantly by one large OEM, for relaxed emission norms for cars weighing up to 909 kg, is this: Is this an attempt to rewrite the definition of the “small car” in India?
Since 2006, when the UPA government defined this category as cars with length not exceeding four metres and engine displacement of up to 1200 cc (petrol) or 1500 cc (diesel), the weight of the car has never been a factor.
The “small car” category was specifically created in the Union Budget that year to boost industry efforts to make India a global hub. After nearly two decades and scores of cars across OEMs complying with these specifications, the latest move to add the weight criterion has raised multiple eyebrows.
The issue stems from the latest draft of the Corporate Average Fuel Efficiency (CAFE) 3 norms issued by the Bureau of Energy Efficiency (BEE). These norms define emission caps for OEMs’ vehicle fleets for a five year period starting 2027-28.
One of the key provisions in the draft proposes a three gram lower emission cap for cars weighing up to 909 kg. Now, prominent car OEMs, including Tata Motors Passenger Vehicles, JSW MG Motor India, Mahindra & Mahindra and some others, have written to the Ministry of Power, objecting to what they say is the creation of a new definition for small cars.
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They have said this would alter the level playing field for competitors and slow down overall electric vehicle (EV) penetration, since EVs are inherently structurally heavier due to the battery. The debate over the weight criterion has intensified as the deadline to finalise CAFE 3 norms comes closer – industry and government officials said the norms could be finalised by month end – and there are no signs of a consensus among different OEMs.
An industry official pointed out that lighter cars may not satisfy the requirements for five star Bharat NCAP safety ratings. He also said that if weight is to be the decider, then the industry should be given more time to come up with compliant, lighter car models. “Instead of taking weight as a determinant of emission norms, many of us had suggested that price bands be considered.
This was discussed at an industry meeting…if the argument is affordability, isn’t lower price a better determinant than weight,” this official wondered, requesting anonymity. He also said that at a recent meeting, top officials of the ministry of power acknowledged that just one large OEM was pushing for the weight criterion, not multiple OEMs, as many reports have suggested.
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Over time, vehicle weights up
At least one of the OEMs opposing the weight criterion has cited safety considerations, saying “over time, to support conformance to safety regulations, vehicle weights have increased”.
It has also alluded to expanding road infrastructure, which is “being upgraded for higher speeds and better traffic flow. This demands safer, structurally robust vehicles”.
A second OEM has echoed these views, saying that the GST definition of small cars has been guiding the industry since 2006.
“All investments (have been) made with that as the basis. We firmly believe that the creation of any such sub-category of vehicles based on weight can have adverse effects in terms of the nation’s progress towards safer, cleaner cars and can alter the level playing field for industry players”. Also, this OEM has pointed towards increasing vehicle weight, saying linking weight based benefits to small cars risks “slowing EV penetration as EVs are structurally heavier due to battery weight”.
A third OEM has also underlined “unintended implications for road safety, competitive neutrality, EV adoption and India’s long term energy and climate goals” if a special subcategory based on weight were to be created.
A car in India weighs anywhere between 750 kg to 2500 kg, making the industry average car weight 1170 kg. One of the OEMs quoted above has pointed to the fact that so far, all cars rated under Bharat NCAP exceed 909 kg “indicating that lighter vehicles may not necessarily meet safety thresholds”.
All three have also alluded to buyer preference for heavier cars, citing the decline in the sales of entry level hatchbacks: their share in total PV sales was down to just 10 per cent in FY25 from 29 per cent in FY15. In the last five years, though, compact SUVs have grown from 16.8 per cent to 28.6 per cent.
When asked about different OEMs lobbying for and against relaxation to small cars, a senior government official had told ETAuto earlier “we cannot allow large cars to continue polluting for longer”, without elaborating further. Meanwhile, in its response to the CAFE-3 draft, the Society of Indian Automotive Manufacturers (SIAM) has said its members have “mixed” views “on the topic of benefit of 3g for petrol cars below 909 kg unladen mass”.
SIAM’s response follows weeks of internal discussions with members offering diametrically opposite points of view. A final decision on CAFE-3 norms would involve at least three ministries – road transport and highways, heavy industries and power.
What CAFE-3 draft says
The draft introduces a mass-based linear formula to determine the Annual Average Fuel Consumption (AAFC) Standard (expressed in petrol equivalent litres per 100 kilometres) that a manufacturer must meet. The standard is directly linked to the manufacturer’s weighted average unladen mass of its fleet and the proposal speaks of annual tightening from 2027-28 to 3.01 litres/100 km by 2031-32.
Put simply, this means each year, the permissible emission of the entire fleet of vehicles of each OEM will be lower and each OEM has to show its AAFC to be less than or equal to the standard fixed for that year.
The draft refers to vehicle models with specific characteristics being eligible for an additional reduction in their manufacturer-declared CO2. This eligibility is partly defined by mass. So, a model with unladen mass up to 909 kg, engine capacity up to 1200 cc and length up to 4000 mm is eligible for a further reduction of 3 g of CO2.
