Indian automakers renew offer to delay tougher fuel efficiency rules – sources

NEW DELHI, Aug. 3 (Reuters) – Indian automakers are stepping up efforts to get more time to meet tougher fuel efficiency rules aimed at reducing carbon emissions, while companies are still shocked by the financial impact of COVID-19, sources told Reuters.

The industry body leading the initiative, the Society of Indian Automobile Manufacturers (SIAM), is expected to meet with the Minister of Transport on Tuesday to request a one-year delay to comply with the rules, which is expected to come into force. next April, the sources said. , who have direct knowledge of the plans.

The group is expected to describe how the auto industry plans to adopt clean tech in the future, said one of the sources, who declined to be identified because she is not authorized to speak to the media.

SIAM did not immediately respond to a request for comment.

The Business Average Energy Efficiency Rules (CAFE) force automakers to reduce their average carbon emissions, turning to strategies such as launching electric cars or vehicles using alternative fuels like ethanol.

Automakers have said it would be difficult to make new investments to meet the stricter rules, especially as profits have been hit by falling sales in the past two years as the pandemic has slowed demand. .

But it would allow India to cut pollution, meet its carbon reduction targets under the Paris Agreement, and lower its fuel import bill.

In March, SIAM, which has top sellers Maruti Suzuki (MRTI.NS) and Hyundai Motor (005380.KS) among its members, asked for a two-year delay.

At the time, a senior government official said an extension was unlikely, but some concessions could be considered if automakers showed serious intention to invest in clean tech. Read more

India introduced a first phase of its CAFE measures in April 2017, giving automakers until the end of March next year to reduce carbon emissions from new cars to 130 grams per km.

In a second phase from April 1, 2022, India proposed a further drop to 113 grams per km.

The stricter CAFE rules also aim to bring India’s regulations for car manufacturers in line with global standards.

Sales of hybrid and electric vehicles have increased in Europe, for example, where automakers face heavy penalties if they do not develop low-emission technology.

But India has yet to set penalties for companies that fail to meet its stricter CAFE standards.

Report by Aditi Shah; Editing by Clarence Fernandez

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