Indian automakers ask for extra year to meet fuel efficiency rules, sources say
NEW DELHI, Aug 3 (Reuters) – Indian automakers ask for another year to meet tougher fuel efficiency rules aimed at reducing carbon emissions, as companies reeling from the impact financial support for COVID-19, sources told Reuters.
The industry body leading the effort, the Society of Indian Automobile Manufacturers (SIAM), was due to meet with the transport minister on Tuesday to request a one-year deadline to comply with the rules, which is expected to come into effect next April, the sources said. , who have direct knowledge of the plans.
The group is expected to describe how the auto industry plans to adopt clean tech, said one of the sources, who declined to be identified because she is not authorized to speak to the media.
SIAM did not respond to a request for comment.
The Road Transport Ministry said in a statement it had met with SIAM officials and their proposal was under consideration, but did not give details.
The Business Average Energy Efficiency Rules (CAFE) require car manufacturers to reduce their carbon emissions by launching electric cars or vehicles using alternative fuels.
Automakers have said it would be difficult to make new investments to adhere to the stricter rules, especially when declining sales as the pandemic slowed demand slashed profits.
But it would allow India, the world’s fifth-largest automobile market, to cut pollution, meet its carbon reduction targets under the Paris climate agreement and reduce its fuel import bill.
In March, SIAM, whose members include top sellers Maruti Suzuki (MRTI.NS) and Hyundai Motor (005380.KS), requested a two-year delay.
At the time, a senior government official said an extension was unlikely, but some concessions could be considered if automakers showed serious intention to invest in clean tech. Read more
India introduced a first phase of its CAFE measures in April 2017, giving automakers until the end of March next year to reduce carbon emissions from new cars to 130 grams per km.
In a second phase from April 1, 2022, India proposed a further drop to 113 grams per km.
The stricter rules also aim to bring India’s regulations for car manufacturers in line with global standards.
Sales of hybrid and electric vehicles have increased in Europe, for example, where automakers face heavy penalties if they do not develop low-emission technology.
But India has yet to set penalties for companies that fail to meet its stricter CAFE standards.
Report by Aditi Shah; Editing by Clarence Fernandez and Barbara Lewis
Our Standards: Thomson Reuters Trust Principles.