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Mint
21 hours ago
- Automotive
- Mint
MoRTH may bat for biofuel vehicles in CAFE 3 norms input to BEE
New Delhi: Amid an ongoing tussle over emission norms in the world's third-largest auto sector, the ministry of road transport and highways (MoRTH) is likely to ask the Bureau of Energy Efficiency (BEE) to provide incentives to vehicles running on biofuels such as ethanol as well as flex fuels, according to two people aware of the development. Corporate Average Fuel Efficiency or CAFE-3 norms are a cap on the average carbon dioxide emissions of a carmaker's entire fleet, and are currently set at 113 grams per kilometre. MoRTH is likely to push for 'biogenic derogation' to be included in the third iteration of the norms, to be enforced from April 2027 at a lower cap of 91.7 g/km. Biogenic derogation refers to concessions given to emissions from flex fuels, ethanol, methanol, and other alternative biofuels. 'We are examining attaching differential weights to vehicles based on different fuel combinations including electric, bio fuels and also on domestic content under the Cafe 3 norms proposed' said the first person quoted above. Under current CAFE 2 norms, carmakers get benefits for selling cleaner technologies such as hybrid vehicles, electric vehicles, and hydrogen fuel cell vehicles, but vehicles running on biofuels have not been incentivized yet. MoRTH's push for biofuels is likely to provide manufacturers another option to reduce carbon emissions on Indian roads, with the penetration of electric and hybrid vehicles remaining low in most parts of the country. 'The plan will help address the concerns of the auto industry that keeping emission down with just one alternative fuel option by way of electric vehicles would be difficult as penetration of these vehicles still remains low. Now companies could push for attaining Cafe 3 norms by widening the fuel option for the vehicles,' said the person mentioned above. 'The weight system is still under discussion and once it is finalized, the same would be recommended to the panel that is finalizing Cafe 3 norms,' said the second person mentioned above. Email queries sent to MoRTH and BEE remained unanswered till press time. India's electric vehicle penetration for four-wheelers has risen up to 2.6% at the end of FY25, with a little over 100,00 electric cars sold out of more than 3.8 million cars. Biofuels are fuels produced from organic matter, or biomass, such as plants and agricultural or industrial waste. They can be used as a replacement for or in addition to fossil fuels like diesel and gasoline, and can also be used to generate heat and electricity. Biofuels are considered a renewable energy source because the biomass used to produce them can be replenished. They also help in containing CO2 emissions when used as fuel in vehicles. CAFE norms follow a 'super credit' system, wherein concessions are given for using cleaner forms of technology on the road. For instance, under current norms, the sale of an electric car is counted as three sales, while that of a fossil fuel car is counted as a single sale. This form factor multiple helps carmakers keep total fleet emissions low, as the average fuel efficiency is the total fleet emissions per sale. A publicly available BEE invite for stakeholder consultations in June 2024 noted that the sale of one strong hybrid car would be counted as two, that of a plug-in hybrid car would be 2.5, and electric and hydrogen fuel cell cars would be counted as three. BEE proposed in those consultations to increase these incentives for electric and hydrogen cars, but reduce it for hybrids. Auto industry body Society of Indian Automobile Manufacturers (Siam) proposed in December 2024 the inclusion of a 'biogenic factor' in CAFE 3 norms. 'SIAM has proposed that CO2 produced from the combustion of biofuels should be classified as "green CO2" and therefore treated as zero, being biogenic CO2. This means that if a car runs on some blend of biofuel and petrol, the CO2 emissions from the biofuel component should be subtracted from the total tailpipe CO2 emissions for the purpose of CAFÉ calculation,' the letter dated 23 December 2024 said. Siam proposed to subtract 14.3% of a vehicle's tailpipe emissions if it was running on E20 flex fuel. E20 is a blend of ethanol (20%) and gasoline (80%). Indian carmakers are gearing up for the flex fuel shift. 'Hyundai Motor India Ltd. (HMIL) has actively participated in the auto industry's discussions on CAFÉ 3 norms, with its views submitted to the Government via SIAM in December 2024. We remain steadfast in our pursuit of smart, sustainable, and future-ready mobility solutions for India. We would not be able to comment further on the discussions on CAFÉ 3 till we receive any official communication from the Government,' said Puneet Anand, AVP and Vertical Head (Corporate Affairs, Corporate Communication & Social), HMIL. Anand added, 'Currently, HMIL offers E20-compliant vehicles in line with prevailing Government regulations. In India, HMIL continues to deliver mobility options tailored to diverse consumer needs, spanning Petrol, Diesel, CNG, and Electric vehicles. Looking ahead, Hyundai Motor Company globally leads in propulsion technologies, encompassing ICE, CNG, Flex-Fuel, Hybrid, Electric and Hydrogen solutions.' 'HMIL remains committed to supporting the Government of India's vision for energy security, reduction in oil imports, and rural economic upliftment through the promotion of flex fuel technologies. In alignment with this, at the Bharat Mobility Global Expo 2025, HMIL unveiled the first working prototype of the flex fuel-powered Hyundai CRETA, equipped with advanced powertrain technology capable of operating on fuel blends ranging from E0 to E100. This innovation underscores our dedication to sustainable mobility, as flex fuel vehicles powered by ethanol — a biogenic fuel — offer reduced net carbon emissions, enhanced performance, and potential economic benefits for consumers, especially with supportive Government policies on fuel availability and incentives.' Flex fuel vehicles are equipped with internal combustion engines that can operate on more than one fuel. They are primarily meant to run on ethanol and methanol or a blend of biofuels and on conventional fuels such as petrol or diesel. These engines can also run on various levels of ethanol blended in conventional fuels - typically from typically from E20 (20% ethanol) up to E100—without needing significant modifications in performance.
Time of India
5 days ago
- Automotive
- Time of India
India's CAFE norms penalise small cars: Study
Kolkata: A study by the Indian arm of Nomura Research Institute, the largest economic research and consulting firm in Japan, has said that India's policy on fuel efficiency norms for new cars penalises small ones with disproportionately stringent CO2 targets. India's Corporate Average Fuel Efficiency (CAFE) norm's linear weight-based approach is also different from the graded regulations in other major car manufacturing countries, where smaller lightweight cars have relaxed emission norms. "Globally, all major automotive markets including the US, China, Japan, Korea, and Europe offer regulatory protection to small cars under their CAFE frameworks due to their environmental and socio-economic value," the Nomura researchers said. You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata Maruti Suzuki has the biggest portfolio of small cars, with 10 models including Alto, Celerio, Wagon R, Swift, Dzire, Eeco and Fronx that weigh less than 1,000 kg and make up 65% of the domestic volumes for the company. Other automakers that have cars under 1 tonne are Renault (Kwid and Kiger), Tata Motors (Punch, Tiago and Altroz), Toyota (Glanza), Hyundai (Exter and i10 Nios), Citroen (C3) and Nissan (Magnite). CAFE norms are set to get more stringent in 2027 and could push compliance costs of small cars beyond affordable levels. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo Since the introduction of CAFE norms, prices of small cars have shot up due to the need for automakers to invest in technologies that improve fuel efficiency and reduce emissions. Sales of small cars (priced up to Rs 5 lakh) have fallen by 35% per year (compounded annual rate) between 2016-17 and 2024-25.
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Business Standard
02-07-2025
- Business
- Business Standard
PNB scraps minimum balance penalties: Here's how it may help customers
Punjab National Bank (PNB) has waived off penal charges on customers for not maintaining Minimum Average Balance (MAB) in savings accounts, seeking to promote financial inclusion. The step is expected to help economically vulnerable customers who may struggle to maintain monthly balance limits, said the state-owned lender. What has changed? Like many other banks, PNB had levied penalties on customers who failed to maintain a MAB in their savings accounts. These charges varied based on account type and geography (urban, semi-urban or rural branches), and ranged from Rs 10 to Rs 600 or more per month, excluding GST. Now, under the new policy: -No penalty will be levied for non-maintenance of MAB in any PNB savings account. -The waiver applies across all customer segments and locations. Why this matters For many account holders, particularly those who are poor and or live in rural areas, maintaining a monthly average balance can be burdensome. PNB said waiving off penalties will encourage continued use of formal banking systems, especially among first-time or low-income users. 'This decision reflects our unwavering commitment to inclusive banking. We believe that waiving these charges will ease financial pressure on customers and encourage greater participation in the formal banking ecosystem.' said Ashok Chandra, managing director and chief executive officer of Punjab National Bank, in a press statement. The Reserve Bank of India (RBI), has in recent years pushed for greater financial inclusion, encouraging banks to design simpler, more accessible products.
Mint
26-06-2025
- Automotive
- Mint
Centre mulls easing fuel efficiency norms for small cars sought by Maruti Suzuki: Report
India is considering relaxing fuel efficiency norms for small cars after lobbying by Maruti Suzuki, which has seen sales of such cars drop amid an SUV boom, industry and government sources told Reuters. Small cars have been key to Maruti's success in India and account for most of its sales there. However, declining demand for small models, such as Alto or Wagon-R, has driven their share in the carmaker's sales to less than 50% of the 1.7 million cars it sold last fiscal year from nearly two-thirds two years ago. India is also concerned about falling sales of small, affordable cars, according to a senior government official, and the country's top carmaker recently made the case for more favourable fuel emission norms arguing slumping sales will hurt overall growth of the passenger vehicle market. "There should be more benefit for small cars. Maruti has been asking for that and we agree," the official said, explaining the rationale behind the planned move. Under its Corporate Average Fuel Efficiency norms, India currently links the quantity of permissible carbon dioxide emissions to the vehicle's weight for all cars weighing less than 3,500 kg (7,716 lb). The planned easing would relax such limits for cars weighing less than 1,000 kg, three people said, without sharing specific details of the reduction. To meet the norms and avoid penalties, carmakers need to sell a certain percentage of low-emission models, mainly electric vehicles. Relaxing the limits for small cars, means less pressure to electrify them, which will benefit those with the larger share of such models in their lineup, they said. With 10 of its current 17 models weighing less than 1,000 kg, Maruti stands to gain the most. Other carmakers with at least one small model on sale include Hyundai Motor, JSW MG Motor, Renault and Toyota Motor. India's ministry of heavy industries did not respond to a request seeking comment. Maruti did not respond to an email seeking comment, but its Japanese parent Suzuki Motor said in a 2024 sustainability report that small cars were good for the environment not just because of their lower emissions but also because fewer materials and less energy were needed to make them. In a closed-door meeting on June 17, the ministry asked carmakers, including Tata Motors, Mahindra & Mahindra and Volkswagen, if they agreed to give small cars more leeway in the next set of fuel efficiency norms that will apply from April 2027, three people said. The companies are yet to respond, but any preferential treatment will be a departure from a previously agreed consensus and could be seen as giving Maruti an unfair advantage, four sources said. Tata, Mahindra, Volkswagen, Hyundai, JSW MG Motor and Toyota also did not respond to emails seeking comment. Renault's country head, Venkatram Mamillapalle, said the company is confident that India's auto trade body will "represent the collective voice of the industry ... that benefits all stakeholders". Four people familiar with the matter said that applying different norms based on a car's weight or size has not come up during months of consultations between the government and automakers. Disclaimer: This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
Time of India
26-06-2025
- Automotive
- Time of India
Govt mulls easing fuel efficiency norms for small cars sought by Maruti Suzuki: Report
India is considering relaxing fuel efficiency norms for small cars after lobbying by Maruti Suzuki , which has seen sales of such cars drop amid an SUV boom, industry and government sources told Reuters. Small cars have been key to Maruti's success in India and account for most of its sales there. However, declining demand for small models, such as Alto or Wagon-R, has driven their share in the carmaker's sales to less than 50% of the 1.7 million cars it sold last fiscal year from nearly two-thirds two years ago. India is also concerned about falling sales of small, affordable cars, according to a senior government official, and the country's top carmaker recently made the case for more favourable fuel emission norms arguing slumping sales will hurt overall growth of the passenger vehicle market. "There should be more benefit for small cars. Maruti has been asking for that and we agree," the official said, explaining the rationale behind the planned move. Under its Corporate Average Fuel Efficiency norms, India currently links the quantity of permissible carbon dioxide emissions to the vehicle's weight for all cars weighing less than 3,500 kg (7,716 lb). The planned easing would relax such limits for cars weighing less than 1,000 kg, three people said, without sharing specific details of the reduction. To meet the norms and avoid penalties, carmakers need to sell a certain percentage of low-emission models, mainly electric vehicles. Relaxing the limits for small cars, means less pressure to electrify them, which will benefit those with the larger share of such models in their lineup, they said. With 10 of its current 17 models weighing less than 1,000 kg, Maruti stands to gain the most. Other carmakers with at least one small model on sale include Hyundai Motor, JSW MG Motor, Renault and Toyota Motor. India's ministry of heavy industries did not respond to a request seeking comment. Maruti did not respond to an email seeking comment, but its Japanese parent Suzuki Motor said in a 2024 sustainability report that small cars were good for the environment not just because of their lower emissions but also because fewer materials and less energy were needed to make them. In a closed-door meeting on June 17, the ministry asked carmakers, including Tata Motors , Mahindra & Mahindra and Volkswagen, if they agreed to give small cars more leeway in the next set of fuel efficiency norms that will apply from April 2027, three people said. The companies are yet to respond, but any preferential treatment will be a departure from a previously agreed consensus and could be seen as giving Maruti an unfair advantage, four sources said. Tata, Mahindra, Volkswagen, Hyundai, JSW MG Motor and Toyota also did not respond to emails seeking comment. Renault's country head, Venkatram Mamillapalle, said the company is confident that India's auto trade body will "represent the collective voice of the industry ... that benefits all stakeholders". Four people familiar with the matter said that applying different norms based on a car's weight or size has not come up during months of consultations between the government and automakers.
