The Centre has listed eight major automobile manufacturers, which are Hyundai, Kia, Mahindra, and Honda, for breaching fleet emission standards in the fiscal year 2022-23. This might fetch them penalties of Rs 7,300 crore, as estimated by The Indian Express.
The violators face fines of over Rs 2,800 crore with Hyundai, followed by Rs 1,800 crore from Mahindra and Kia for Rs 1,300 crore. Other violators in the list include Honda, Renault, Skoda, Nissan, and Force Motors.
Newer fuel efficiency rules after major manufacturers involved in breaching fleet emission standards
The BEE, a subsidiary of the Ministry of Power, made new, tougher Corporate Average Fuel Efficiency (CAFE) regulations effective in FY23. The regulation forced the automobile and auto parts manufacturers to cap consumption at 4.78 liters per 100 kilometers and carbon dioxide emission at 113 grams per kilometer.
But, of course, it has invited conflict with the automotive companies against the Government. It contends that a new improved structure of penalization cannot apply to an entire fiscal year which commenced only from 1 January 2023.
Testing and Penalties
During FY23, vehicles from 18 automakers were tested under simulated conditions. Fines were then calculated based on the number of non-compliant vehicles sold. Previously, all 19 carmakers complied with CAFE norms in FY22, but the compliance report for FY23 remains pending.
CAFE norms were first revealed in 2017. They look to limit fuel consumption by vehicles under 3,500 kg. Moreover, they affect all petrol, diesel, CNG, LPG, hybrid, and electric vehicles.
Stiffer Fines
Changes to the Energy Conservation Act in December 2022 increased the penalties for non-compliance. Automakers will now face fines of Rs 25,000 per vehicle for minor breaches and Rs 50,000 for major violations. Not only this, but it comes along with a base fine of Rs 10 lakh.
Manufacturers are also asked to submit final compliance data before May 31 to the International Centre for Automotive Technology, or ICAT. These reports of ICAT are subsequently presented to the Ministry of Road Transport and Highways, and the Ministry of Power on August 31.
Stringent measures by the Government for cleaner, more energy-friendly vehicles in the wake of mounting concerns for the environment.
Also, see: Orange signs a multi-year partnership with OpenAI