As a result of lobbying by Maruti Suzuki, the Indian government is reportedly considering easing fuel efficiency norms for small cars; also defined as cars that weigh less than 1,000kg. Reuters reports that industry and government sources have confirmed the development, with some confirming that Maruti has approached the Central Government, and that the Ministry of Heavy Industries (MHI) is mulling the proposal.
- Maruti lobbies for easing of CAFE norms for cars below 1,000kg
- Currently all cars that weigh less than 3,500kg have the same standard
Maruti small cars will benefit from easing form CAFE norms
Maruti sales in FY2025 increased only 0.05 percent due to decline in small car sales
While small cars have been the major driver for Maruti Suzuki’s sales in the past, the more affordable side of the market has seen a massive decline in sales in recent years. This has impacted Maruti’s sales – FY2025’s 17,60,767 units was just a 0.05 percent growth over FY2024’s 17,59,881 units – and has seen its market share decline steadily to 40.61 percent at the end of FY2025.
The Indian government seems to share Maruti Suzuki’s concerns regarding the falling sales of small, affordable cars. The proposal on the table is for CAFE (Corporate Average Fuel Efficiency) norms for small cars to be eased – currently all cars that weigh less than 3,500kg have the same standard – in a phased manner.
Hyundai, Tata, Renault, Honda among carmakers that could also benefit
At the moment, Maruti has 17 models on sale in India, of which 10 weigh less than 1,000kg – the Alto K10, Celerio, S-Presso, Wagon R, Baleno, Swift, Ignis, Fronx, Dzire, and Eeco. Other carmakers that would benefit from the easing of fuel efficiency norms for small cars are Hyundai (the Grand i10 Nios, Aura and Exter), Renault (Kwid and Triber), Tata Motors (Tiago), Toyota (Glanza and Taisor), Honda (Amaze), and Citroen (C3).
SOURCE: Reuters
Also see:
Future of small cars lies in CNG market and for CAFE compliance: Hyundai COO
Maruti Jimny sales in India are a third of its exports
Maruti Grand Vitara hybrid discounts cross Rs 1.5 lakh in June
