Mahindra, Hyundai among 8 carmakers facing ₹7,300 crore emission penalty
Eight leading car manufacturers in India, including Hyundai, Mahindra, Kia and Honda, are likely to be hit with hefty fines for surpassing the prescribed fleet emission levels. According to a report by The Indian Express, the companies could be fined up to ₹7,300 crore for failing to meet the tightened Corporate Average Fuel Efficiency (CAFE) standards of 2022. The final decision on imposing this emission penalty is still pending as discussions are ongoing among all stakeholders.
Emission penalties amid severe pollution crisis
The report comes at a time when northern India, especially Delhi and its neighboring areas, are reeling under extreme pollution. AQI levels in these regions have gone up to severe to severe plus category. In light of this crisis, authorities have restricted the movement of vehicles and banned BS-III petrol and BS-IV diesel cars from the roads till further notice.
Hyundai, Mahindra, Kia could pay bulk of emission penalty
The report indicates that Hyundai, Mahindra and Kia could take the hit of the nearly ₹7,300 crore emission penalty. Hyundai could face the steepest fine of ₹2,837 crore, roughly 60% of its annual profit for FY2023. Mahindra could be penalized up to ₹1,788 crore while Kia Motors could face a penalty of around ₹1,346 crore. The emission penalties are divided into two slabs with a fixed penalty for each and an additional per vehicle manufactured during the financial year.
Carmakers urge government to reconsider new CAFE norms
None of the carmakers have issued any official statement regarding the emission penalties they may face. However, they have urged the government to reconsider applying the new CAFE norms on vehicles manufactured in the entire financial year will be unfair. The new CAFE norms set by the Bureau of Energy Efficiency, under the Union Ministry of Power, were first announced in India way back in 2017. They were introduced with stringent measures in 2022 but implemented from January last year.
