Traffic moves on a flyover in Mumbai, India, February 1, 2026. REUTERS/Francis Mascarenhas
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CNBC TV1810-02-2026, 13:23

India Scraps Small-Car Fuel Rule Break in 2027 Norms After Industry Objections

  • India drops planned concession for small cars in 2027 fuel-efficiency rules after objections from automakers like Tata Motors and Mahindra & Mahindra.
  • A September draft had proposed leniency for petrol cars weighing 909 kg or less, widely seen as favoring Maruti Suzuki.
  • The Power Ministry removed the exemption and tightened parameters, increasing pressure on all automakers to boost EV and hybrid sales.
  • New rules curb over-compensation for vehicle weight and aim for real-world efficiency gains, introducing a steeper reduction pathway for emissions.
  • The revised plan aims to cut average fleet emissions to about 100 grams/km by March 2032, with credits for EVs potentially lowering it to 76 grams/km.

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