CAFE weight relief unfairly benefits one OEM, says JSW MG Motor

Small car protection in CAFe norms is a global norm and in national interest, says Maruti

Granting special relief to small petrol cars weighing under 909 kg in the upcoming CAFE-3 emission norms will “disproportionately benefit” a single manufacturer, distort “market competition” and run “contrary to the principle of a level playing field”, JSW MG Motor has told Union Power Minister Manohar Lal Khattar in a letter.

 

“As India targets raising average highway speed from 47 km per hout to nearly 85 km per hout by 2032, structurally stronger vehicles become critical. India continues to face more than 168,000 road fatalities annually, over 70 per cent linked to high speeds. All models rated under Bharat New Car Assessment Programme (Bharat NCAP) so far exceed 909 kg, indicating that lighter vehicles may not meet necessary safety thresholds. A relaxation for this weight band can unintentionally weaken safety outcomes,” JSW MG Motor wrote in its letter dated November 21, reviewed by Business Standard.

 

The company did not respond to request for an immediate comment.

 

Rahul Bharti, senior executive officer for corporate affairs at Maruti Suzuki, countered that small-car protection in the proposed CAFE norms is both a “scientific requirement” and a “global norm”. “China, the US, South Korea and Japan — all have some form of protection. It is in national interest. Even Europe has a relaxation for smaller cars and is tighter on heavier cars,” he said.

 

The CAFE (corporate average fuel efficiency) framework sets carbon-dioxide emission targets, measured in grams per kilometre, that each carmaker’s fleet must achieve. Companies that fall short face stiff penalties from the Bureau of Energy Efficiency (BEE), which sits under the Ministry of Power.

 

The BEE published its first draft of CAFE-3 norms in June 2024, covering FY28-FY32. After detailed consultations, the Society of Indian Automobile Manufacturers (Siam) submitted comments in December 2024, seeking several changes. 

 

A few months later, Maruti Suzuki (MSIL), India’s biggest carmaker and dominant small-car seller, approached the BEE, seeking weight-based exemption for small petrol models. The move has sharply divided the industry.

 

In its letter to Khattar, JSW MG Motor said: “Over 95 per cent of cars under 909 kg come from a single OEM. A relaxation restricted to this weight band would disproportionately benefit one manufacturer, altering market competition and disadvantaging others contrary to the principle of level playing field.”

 

The company argued that because electric vehicles are structurally heavier due to battery mass, weight-linked exemptions for petrol cars would put EVs at a “comparative disadvantage”, slowing India’s transition to zero-emission mobility and undermining the fleet-wide efficiency improvements central to CAFE-3. JSW MG Motor holds nearly 35 per cent of India’s EV market and says more than three-quarters of its sales now come from electric models.

 

Weight, the company added, has no direct connection to affordability. “Cars of a similar price often differ in kerb weight because of platform design, safety features and technology content. Several models priced around ₹10 lakh sit just above the 909 kg limit. A weight-based concession would favour certain products within the same price segment, without directly benefiting lower-income consumers.”

 

The company urged the government to stick with the way small cars have been defined under the current GST (goods and services tax) regime. “There is a need to maintain consistency with the GST definition of small cars. For many years, small cars have been clearly defined under GST by length (less than 4 metres) and engine capacity (less than 1200 cc for petrol and less than 1500 cc for diesel). Industry investments, localisation and supply chains have been aligned to this definition. Introducing a parallel, weight-based definition under CAFE risks creating policy inconsistency and regulatory uncertainty," it mentioned.

 

Cars under 909 kg accounted for 15 per cent of India’s total car sales in FY25, the company said, warning that any special relief for this category “risks weakening efforts” to cut India’s dependence on imported crude, and could slow improvements in air quality and fleet-wide emissions. “Importantly, it could halt technological progress in a segment where (fuel) efficiency gains are most needed,” it added.