Hyundai, Mahindra, Kia along with 7 others fined Rs 7,300 crore fine, Car makers deny claim

The Indian Government has reportedly imposed a hefty fine of Rs 7,300 crore on eight car makers including Hyundai, Kia, Mahindra, Honda, Skoda, Nissan, Renault and Force Motors. The fines have been imposed due to violation of emission norms, said reports.

The centre has pointed out the eight carmakers for exceeding mandated fleet emission levels as per the stricter CAFE norms during FY 23. Hyundai has received the highest fine of Rs 2,800 crore while Mahindra with a Rs 1,800 crore fine, followed by Kia with a Rs 1,300 crore fine.

However, Korean carmakers have refuted the report and claimed that they have not that received such penalty. Hyundai and Kia said that these reports are over a month old, and the government has not taken any action in this regard or imposed any fines on them as yet. Meanwhile, the Indian car maker Mahindra’s regulatory filing at the stock exchange that no penalty for its alleged violation has been levied or is under consideration.

Stricter CAFE norms
The Bureau of Energy Efficiency (BEE) under the Ministry of Power, tightened Corporate Average Fuel Efficiency (CAFE) norms during the Financial Year 2023. As per the stricter Cafe norms, the carmakers not to exceed fuel consumption of 4.78-litres per 100km and limit carbon dioxide emissions to 113 grams per km.

However, as per the report, carmakers have argued that the norms came into effect on January 1, 2023, and they being fined for the entire year is not fair. The penalties were calculated based on the number of non-compliant vehicles sold throughout the year.

In 2023, vehicles from 18 carmakers were tested under simulated driving conditions. The CAFE norms were first introduced in India to encourage automakers to manufacture more energy-efficient engines. The rule applies to vehicles weighing under 3500kg and powered by petrol, diesel, LPG, CNG, hybrids, and electric batteries.