Four carmakers with 63% output supported CAFE relief: R C Bhargava

This story has been updated. Maruti Suzuki Chairman R C Bhargava on Tuesday came down heavily on the position of the majority of members of the Society of Indian Automobile Manufacturers (Siam) which rejected a revised draft offering relaxation in fuel-efficiency norms for lighter cars.

 

He said four car companies accounting for 63 per cent of vehicle production in the country had supported the flexible move and had done so because it was “the right thing” for the country.

 

The revised draft, prepared by the Bureau of Energy Efficiency (BEE), has given relaxation in Corporate Average Fuel Efficiency (CAFÉ) norms for smaller cars.

 

Bhargava said: “Maruti Suzuki, Renault, Toyota Kirloskar, and Honda, which account for 63 per cent of passenger-vehicle production as in October, have supported the proposal even though many of the companies don’t have a substantial small or light weight car play.”  

 

The BEE’s revised draft gave weight-based exemption to vehicles running on petrol with characteristics such as weighing up to 909 kg, having an engine capacity of 1,200 cc, and a length of 4,000 mm. The draft said they would get an additional 3 g.km (3 gm per km) deduction in the carbon-dioxide emission they declare.  Siam told the BEE that it was not able to come to a consensus on the issue and left the matter to it (BEE) to take a final call.  

 

Bhargava pointed out the revised draft was a good beginning but not adequate.

 

“The (current) regulation is flawed because it discriminates against smaller cars and favours bigger cars though the revised draft has partly mitigated this.”

 

“You cannot discriminate against smaller and lighter cars, which are affordable and are for the masses, vis-a-vis heavier, expensive cars, which are for the rich. Only 11 per cent of the vehicle population in the country will benefit from the relaxed norms proposed. Though this is a good beginning, more needs to be done. The set of norms based on the weight of a car has to be re-examined,” Bhargava said.

 

He said that while CAFÉ norms in Europe were conceived to improve the efficiency of cars, in India the influence of German carmakers was strong.

 

European norms too favoured bigger cars, though consumers there could afford them, he added.

 

In India government policy since 2006 had been to encourage small, affordable cars so that consumers could upgrade to a safer ride, according to him.

 

“This is also reflected in the concessions in goods and services tax given recently. Those have made smaller cars attractive.  So why should we have CAFÉ norms, which go against our government’s objective?”