Automakers Face Penalties for Exceeding Emission Norms in FY 2022-23
The Indian government has identified eight automobile manufacturers, including Hyundai, Kia, Mahindra, and Honda, for violating fleet emission norms in the financial year 2022-23. According to a report by The Indian Express, these companies could face penalties totaling approximately Rs 7,300 crore. Hyundai leads the violators with a penalty exceeding Rs 2,800 crore, followed by Mahindra at Rs 1,800 crore and Kia at Rs 1,300 crore. Other affected companies include Honda, Renault, Skoda, Nissan, and Force Motors.
The violations come after stricter Corporate Average Fuel Efficiency (CAFE) norms were introduced by the Bureau of Energy Efficiency (BEE) for FY 2022-23. These regulations set limits on fuel consumption and carbon dioxide emissions, requiring manufacturers to achieve a fuel consumption rate no higher than 4.78 liters per 100 km and limit CO2 emissions to 113 grams per km. Despite the enhanced penalty structure being implemented only from January 1, 2023, the government has applied it retroactively to the entire financial year, which has sparked disagreements from automakers.
First introduced in 2017, the CAFE norms aim to reduce fuel consumption and carbon emissions from passenger vehicles. The compliance report for FY 2022-23, which is yet to be released, will likely show significant penalties for non-compliant automakers, calculated based on the number of non-compliant vehicles sold during the year. The penalties, which range from Rs 25,000 to Rs 50,000 per non-compliant vehicle, come on top of a base fine of Rs 10 lakh for violations.
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