At a time when many big cities in the country are facing the brunt of pollution, the central government has found that emissions levels from cars of eight companies, including Mahindra, Hyundai and Honda, are higher than the norm . Therefore, strict fines may be imposed on these companies, which will be around Rs 7,300 crore.
According to a report by Indian Express, the level of emissions has been found to be high in the car fleet of these leading automobile companies in the fiscal year 2022-23. It is also said in the report that a maximum fine of approximately Rs 2.8 billion may be imposed on Korean carmaker Hyundai. While the fine amount for Mahindra and Kia India will be Rs 1,800 crore and Rs 1,300 crore, respectively.
What are the rules?
The Bureau of Energy Efficiency, under the Union Ministry of Power, had made it necessary for companies to comply with corporate average fuel efficiency (CAFE) norms for all cars sold in the financial year 2022-23. This meant that fuel consumption per 100 km for any car should not exceed 4.78 liters and carbon dioxide emissions should not exceed 113 grams per km.
Dispute between industry and government:
At the beginning of the 2022-23 fiscal year when CAFE rules were tightened. From that moment on, a dispute began between the central government and the automotive industry over the amount of the fine. At the time, car companies had argued that the new rules would only apply from January 1, 2023 and therefore it would not be appropriate to impose penalties on the basis of cars sold during the entire financial year.
We tell you that before January 1, 2023, that is, between 2017 and 2018, it was necessary for vehicles under BEE to consume less than 5.5 liters of fuel every 100 kilometers. In addition, average carbon emissions were limited to 130 grams per kilometer. Now this rule has been made even stricter with new regulations, so that carbon emissions can be controlled.
How much penalty to which companies:
| company | Penalty (in millions of rupees) |
| hyundai | 2,837.8 |
| Mahindra | 1,788.4 |
| did | 1,346.2 |
| sling | 457.7 |
| renault | 438.3 |
| Skoda | 248.3 |
| nissan | 172.3 |
| force engine | 1.8 |
Data courtesy of: Indian Express
Half of Hyundai’s profits will be lost:
Let us tell you that Hyundai Cars India produced a total of 7.27 lakh cars in the financial year 2022-23. During this period, the company sold a total of 5.67 lakh cars in the domestic market. Apart from this, 1.53 lakh cars were exported to other countries. In this financial year, the company had announced a net profit of Rs 4,709 crore. In this context, if a fine of approximately Rs 2,837 million is imposed on the company, it will represent approximately 60 percent of the total profits. This means that more than half of the company’s income will go to fines.
What is COFFEE:
Also abbreviated as Corporate Average Fuel Efficiency (CAFE). This is a government regulation that establishes a minimum average level of fuel efficiency. Which all vehicles sold by the automaker must comply with. If understood in simple language, it is a standard to decide the mileage of the car. This rule helps companies produce highly efficient cars by averaging the fuel economy of all the models they sell.
Corporate Average Fuel Efficiency (CAFÉ) standards were first issued by the government in 2017 under the Energy Conservation Act of 2001, to reduce fuel consumption by reducing carbon (CO₂) emissions. . Its goal is to reduce dependence on fossil fuels and air pollution. Its first phase began from the year 2017-18. According to which the average weight of cars from all manufacturers should be 1,037 kg and the average fuel consumption should be less than 5.49 liters/100 km.
While the second phase is considered to begin in 2022-23. In this phase, the government has made the norms stricter. According to which the average weight of the cars should be 1,082 kg and the fuel consumption should be less than 4.78 liters/100 km. In addition, carbon dioxide emissions should not exceed 113 grams per kilometer. The government believes that thanks to these standards, fuel consumption will be reduced by 22.97 million tons by 2025.
