Rs.7,300 Crore Penalty on Hyundai, Mahindra, and Kia for Violating Emission Standards
₹7,300 Crore Penalty on Hyundai, Mahindra, and Kia for Violating Emission Standards
The Centre has penalized eight carmakers, including Hyundai, Kia, and Mahindra, for failing to meet stricter fleet emission norms in FY 2022-23. The fines, totaling ₹7,290.8 crore, stem from non-compliance with India’s Corporate Average Fuel Efficiency (CAFE) standards. Hyundai faces the steepest penalty of ₹2,837.8 crore, followed by Mahindra (₹1,788.4 crore) and Kia (₹1,346.2 crore).
Under the revised CAFE norms, implemented in FY 2022-23, automakers were required to limit fuel consumption to 4.78 liters per 100 km and CO2 emissions to 113 grams per km. The Bureau of Energy Efficiency (BEE), which enforces the norms, tested models from 18 manufacturers in simulated driving conditions. Non-compliant vehicles led to fines calculated based on the total cars sold.
Automakers have contested the penalties, arguing the stricter norms only applied from January 2023 and should not cover the entire year. The fines also include Honda (₹457.7 crore), Renault (₹438.3 crore), Skoda (₹248.3 crore), Nissan (₹172.3 crore), and Force Motors (₹1.8 crore).
Hyundai’s penalty equals nearly 60% of its FY23 profit of ₹4,709 crore. Industry sources revealed the annual compliance report for 2022-23 remains unpublished, delaying the 2023-24 report.
The penalties follow amendments to the Energy Conservation Act, 2001, in December 2022, which raised fines to ₹25,000-₹50,000 per non-compliant vehicle, alongside a ₹10 lakh base fee. The CAFE norms, introduced in 2017, aim to cut oil dependency and air pollution, encouraging cleaner vehicle production.
Automakers must submit data annually to the International Centre for Automotive Technology, which forwards it to the ministries concerned. However, compliance reports are delayed, raising questions about enforcement.
