‘Gas guzzler’ makers pushing wrong narrative: Maruti Suzuki clashes with other carmakers over CAFE norms

Maruti Suzuki has responded to criticism over its support for leniency towards small cars under the proposed CAFE-III norms. The company said firms producing larger vehicles are spreading misleading information. Rahul Bharti, Senior Executive Officer for Corporate Affairs at Maruti Suzuki, called these criticisms a distraction from concerns about less fuel-efficient vehicles. The debate shows a clear division in India's automobile industry as policymakers consider regulations that will affect market strategies and consumer choices for years.

Bharti said, “Some incorrect facts and narratives are being pushed in a very irresponsible manner by the makers of some large gas guzzlers to take away attention from their large gas guzzlers…I have heard through our media friends about their (other OEMs) claim of arbitrary relaxation for small cars. More than 90 per cent of the world automobile market provides structured relaxations for small cars.”

He explained that these relaxations are based on careful research and policy decisions in major automotive markets. Bharti cited examples: China sets relaxations at about 1090 kg, Europe below 1115 kg, Korea at 1100 kg, Japan uses a continuous parabolic curve, and the US uses a footprint of 41 square feet. He said India's approach aligns with international standards and warned against unfounded accusations about policymakers in these countries.

Opposition to the relaxation, mainly from Tata Motors, focuses on safety. Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, argued that no leniency should be given to small cars based on weight and affordability as it could compromise safety and distract from sustainable mobility efforts. Tata Motors, Mahindra, Hyundai, and Kia oppose benefits based on vehicle weight, while Maruti Suzuki, Toyota Kirloskar, and Honda Cars India support concessions for small cars.

Chandra also said that using weight as a criterion for relaxation could undermine safety, a critical priority for the country. He warned that diluting emission norms based on weight would conflict with efforts to improve vehicle safety. Bharti, on the other hand, disputed claims that demand for small cars has fallen due to customers preferring larger SUVs. He said the idea that entry-level buyers are directly purchasing expensive SUVs is unfounded, noting that the segment's growth was nearly zero, a fact disproved by GST benefits.

He added that if large cars and SUVs were growing rapidly and entry-level customers were skipping small cars, overall industry growth before GST would have been much higher. Instead, stagnant growth suggests demand for small cars remains relevant and the opposing narrative is misleading. Bharti said the risk is that if the targets become unscientific, then a small car which produces the lowest Co2 will have to be discontinued.

“Maruti Suzuki provides six airbags as standard across all variants, not just the top variants. We don't differentiate between the lives of a richer customer and a poorer one. However, many companies in India are not doing that. They are saving money on the lower variants, avoiding putting six airbags, putting just in the top few variants, and removing them in the lower variants,” stated Bharti.

CAFE II started in 2022, and the upcoming CAFE III phase, expected from April 2027, is under discussion.