Until yesterday, news reports claimed that carmakers like Hyundai, Kia, Honda, Mahindra, Skoda, Nissan, Renault and Force Motors would have to pay a hefty fine totaling Rs 7,300 crore for violating fleet emission norms, also known as CAFE norms, during the 2022-23 period. However, Korean carmakers have confirmed to NDTV 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. While Mahindra did not confirm this directly to NDTV, it stated in its regulatory filing to the stock exchange that no penalty for its alleged violation has been levied or is under consideration, to the best of its knowledge.
The allegations suggested that Hyundai would face the highest fine of Rs 2,873 crore, Mahindra Rs 1,788.4 crore, and Kia Rs 1,346 crore. The remaining penalty was implemented on Honda, Skoda, Nissan, Renault and Force Motors. The penalties were reportedly calculated as either Rs 10 lakh or Rs 25,000/Rs 50,000 per vehicle delivered.
What are CAFE norms?
The CAFE (Corporate Average Fuel Efficiency) norms were established to encourage carmakers to produce more fuel-efficient vehicles. According to these regulations, the average fuel consumption of all cars sold by a manufacturer must not exceed 4.78 liters per 100 km, and carbon dioxide emissions should be limited to 113 grams per km. These norms aim to promote the production of eco-friendly and fuel-efficient vehicles, which is why we are seeing an increased influx of EVs, hybrids, and CNG-powered cars.