 "Hyundai, Mahindra, Kia among firms fined Rs 7,300 cr for emission breach")
The Centre has identified eight automobile manufacturers, including Hyundai, Kia, Mahindra, and Honda, for exceeding mandated fleet emission levels in the financial year 2022-23. This non-compliance could result in total penalties of around Rs 7,300 crore, according to a report by The Indian Express.
Among the violators, Hyundai faces the highest penalty of over Rs 2,800 crore, followed by Mahindra at nearly Rs 1,800 crore and Kia at Rs 1,300 crore. Other companies include Honda, Renault, Skoda, Nissan, and Force Motors.
Stricter CAFE norms in FY23
The Bureau of Energy Efficiency (BEE), under the Ministry of Power, tightened Corporate Average Fuel Efficiency (CAFE) norms at the start of financial year 2022-23. These standards required manufacturers to achieve a fuel consumption rate of no more than 4.78 litres per 100 km and limit carbon dioxide emissions to 113 grams per km.
The stricter regulations have sparked disagreements between automakers and the government. Manufacturers argue that since the enhanced penalty structure took effect only from January 1, 2023, applying it to the entire financial year is unfair, the report said.
In the financial year 2022-23, vehicles from 18 automakers were tested under simulated driving conditions. Penalties were calculated based on the number of non-compliant vehicles sold throughout the year.
While the compliance report for FY21-22 showed adherence to CAFE norms by all 19 carmakers, the FY22-23 report has yet to be published.
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Decoding CAFÉ norms
First introduced in 2017, Corporate Average Fuel Efficiency norms aim to reduce fuel consumption and carbon emissions from passenger vehicles. They apply to vehicles powered by petrol, diesel, LPG, CNG, hybrids, and electric batteries, weighing under 3,500 kg.
The regulations are designed to encourage automakers to produce more energy-efficient and less polluting vehicles, including EVs and hybrids.
Initially, non-compliance penalties under the Energy Conservation Act, 2001, capped at Rs 10 lakh, included the cost of excess energy consumption. However, amendments in December 2022 introduced higher penalties. Automakers now face fines of Rs 25,000 per vehicle for minor deviations and Rs 50,000 per vehicle for significant non-compliance, in addition to the Rs 10 lakh base fine.
Under the compliance framework, automakers must submit their data to the International Centre for Automotive Technology (ICAT) by May 31 of each year. ICAT compiles the data and forwards it to the Ministry of Road Transport and Highways and the Ministry of Power by August 31.