Government Mulls Over Fuel Efficiency Rule Adjustments That May Favor Suzuki

Recent developments suggest that Indian authorities are considering easing fuel efficiency standards for smaller vehicles, specifically those under 1000 kg. This potential shift follows concerns raised by Suzuki, as demand for their smaller vehicles has decreased amidst the rising popularity of SUVs. According to a government official, the government is exploring ways to better support the manufacturers of small cars. Current regulations link permissible carbon dioxide emissions to a vehicle’s weight for cars weighing less than 3,500 kg. The proposed change would alleviate some of these restrictions for cars under 1,000 kg. This might mean less pressure for automakers to comply with low-emission model sales targets. Should such a change be implemented, Suzuki would likely see a positive impact given the number of its models that meet the weight criteria. Suzuki’s 2024 sustainability report underscored that their small cars are good for the environment due to their lower emissions and reduced material use during manufacturing. The topic was addressed in a closed-door meeting on June 17, with representatives from Tata Motors, Mahindra & Mahindra, and Volkswagen in attendance. There have been concerns raised that these adjustments could be interpreted as giving Maruti Suzuki an unfair advantage.