The centre has pointed out eight carmakers for exceeding mandated fleet emission levels during FY 23, as per a report by The Indian Express. The carmakers include Hyundai, Kia, Mahindra, and Honda. The fines of these eight carmakers total Rs 7,300 crore. Other carmakers include Renault, Skoda, Nissan, and Force Motors.
Amongst the carmakers, Hyundai faces the highest fine of Rs 2,800 crore, followed by Mahindra with a Rs 1,800 crore fine, followed by Kia with a Rs 1,300 crore fine. These fines follow the stricter CAFE norms brought into effect in FY 23.
Stricter CAFE norms introduced in FY 23
During the Financial Year 2023, the Bureau of Energy Efficiency (BEE), under the Ministry of Power, tightened Corporate Average Fuel Efficiency (CAFE) norms. The new rules mandated carmakers not to exceed fuel consumption of 4.78-litres per 100km and limit carbon dioxide emissions to 113 grams per km.
However, as per the report, carmakers have argued that the norms came into effect on January 1, 2023, and they being fined for the entire year is not fair. The penalties were calculated based on the number of non-compliant vehicles sold throughout the year.
In 2023, vehicles from 18 carmakers were tested under simulated driving conditions. The CAFE norms were first introduced in India to encourage automakers to manufacture more energy-efficient engines. The rule applies to vehicles weighing under 3500kg and powered by petrol, diesel, LPG, CNG, hybrids, and electric batteries.
