The Indian government has reportedly imposed significant fines totaling Rs 7,300 crore on eight major car manufacturers: Hyundai, Kia, Mahindra, Honda, Skoda, Nissan, Renault, and Force Motors. This action was taken due to their alleged violation of stringent emission norms set by the government.
Hyundai, with the highest penalty of Rs 2,800 crore, followed by Mahindra at Rs 1,800 crore, and Kia at Rs 1,300 crore, were among the most heavily fined. However, both Hyundai and Kia have denied receiving any such penalty, stating that these reports are outdated and no formal action has been taken by the government. Similarly, Mahindra’s regulatory filing with the stock exchange confirmed that no penalty has been imposed or is under consideration.
The Bureau of Energy Efficiency (BEE) under the Ministry of Power implemented stricter Corporate Average Fuel Efficiency (CAFE) norms in FY 2023. These norms mandated a maximum fuel consumption of 4.78 liters per 100 kilometers and CO2 emissions of 113 grams per kilometer.
Car manufacturers have argued that these stricter norms came into effect on January 1, 2023, and penalizing them for the entire year is unfair. The penalties were calculated based on the number of non-compliant vehicles sold throughout the year.
In 2023, vehicles from 18 car manufacturers underwent testing under simulated driving conditions. The CAFE norms were introduced to encourage automakers to produce more fuel-efficient vehicles. These regulations apply to vehicles weighing less than 3500 kg and powered by petrol, diesel, LPG, CNG, hybrid, or electric batteries.
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