Govt snubs auto lobby as new fuel efficiency draft rejects relaxations for small trucks

Mint

3 days ago

New Delhi: India's top energy efficiency agency has snubbed a demand by automakers such as Mahindra and Mahindra and Tata Motors to exclude light commercial vehicles weighing less than 3.5 tonnes from fuel efficiency norms.
In a notification released on Monday night, the Bureau of Energy Efficiency (BEE) issued the latest draft of fuel efficiency norms which will cover heavy, medium and light commercial vehicles, that is N1, N2 and N3 categories of trucks.
The proposal included light commercial vehicles despite opposition from several carmakers who argued that the segment caters to a poorer segment of the economy and such norms will put pressure on costs. They have made several representations to the government over the past few months.
However, BEE has not budged in its submissions.
'Passenger cars (M1 Category) are regulated under CAFE standards, but LCVs (<3,500 kg GVW) remain unregulated. Regulating LCVs will aid decarbonization and reduce fuel costs for small businesses. Most N1 vehicles have a kerb weight ranging between 1,000-2,000 kg,' BEE said in its notifications.
The agency added that extensive deliberations were carried out with stakeholders, including representatives from original equipment manufacturers (OEMs), MoRTH (ministry of road transport and highways), Society of Indian Automobile Manufacturers (Siam), testing agencies (ARAI, ICAT, NATRIP), and leading think tanks.
In financial year 2025, the country saw sales of 582,852 light commercial vehicles, a decline of 2% compared to the year ago period.
With 30 days for the industry to respond to the proposal, the auto lobby Siam will have to rush to the government with its recommendations even as it tries to build consensus internally over the issue.
Last week, automakers attending a Siam meeting executive council meeting agreed to work on an addendum to a December 2024 submission made to the ministry of power on fuel efficiency norms. As part of the addendum, the automakers are slated to work on possible relaxations for LCVs as well as small cars.
'The agency has come out with the proposal fast and it appears the final draft will have regulations on the LCV category despite opposition from automakers. While automakers are working on their proposal, the agency appears to be of the view that enough time was given for concrete recommendations,' a person aware of the developments said.
Queries sent to Mahindra and Mahindra, and Ashok Leyland did not elicit an immediate response. Tata Motors declined to comment on the draft.
To be sure, fuel efficiency norms do not apply to individual vehicles, but to a manufacturer's entire fleet. As per the BEE's latest draft proposal for N1 trucks, the average emissions of carbon dioxide for the fleet should be under 115 grams per kilometre under the Modified Indian Driving Cycle (MIDC) testing conditions. But these may be revised after industry inputs, BEE said in its notification.
Post submission of comments and any subsequent changes, BEE's submission will go to the MoRTH which will issue the final rules. The fuel efficiency norms are set to come into effect by April 2027.
Fuel efficiency norms for commercial vehicles are essential because they have a heavier share in carbon emissions from transportation, despite making up a small part of the total vehicles on roads. In India, for instance, freight vehicles make up about 3% of the total vehicles, but emit about a third of the country's road-related pollutants.
Vehicle design norms may not be enough to combat emissions from commercial vehicles, said Gurudas Nulkar, professor and director, Centre for Sustainable Development, Gokhale Institute of Politics and Economics. 'The condition of roads, condition of vehicles, and the vehicle design have a bearing on the emissions. In the case of heavier vehicles—trucks and buses—emissions are higher when they are stuck in traffic on a low gear. While fuel efficiency norms will make commercial vehicles cleaner when they travel longer distances, there needs to be a focus on policies for such vehicles when they move in urban spaces.' Nulkar also said commercial vehicles are often not maintained as well as passenger cars, making fuel efficiency norms only a part of the solution. 'Vehicles run on the streets, not in labs. Not all vehicles are maintained in the manner that they are tested,' he said.
The draft proposal for fuel efficiency norms for commercial vehicles is the latest step in the government's push for cleaner mobility in the country. Earlier this month, the ministry of heavy industries announced guidelines to claim subsidies for purchasing electric trucks under the ₹ 10,900-crore PM E-drive scheme.
The scheme, which has a ₹ 500 crore allocation for the zero-emission trucks, aims to reduce carbon emissions on Indian roads by providing demand incentives for about 5,500 electric trucks.