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Auto Industry Split Over Proposal for New Lightweight Car Category

Wednesday, 10 December 2025, 15:30 IST
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  • Carmakers divided over a proposal to create a new under-909 kg car segment.
  • Several companies warn it may weaken safety norms and disrupt future investments.
  • Debate intensifies ahead of CAFE 3 fuel efficiency rules set for 2027.

A major disagreement has surfaced within India’s auto industry over a proposal to introduce a new lightweight mini-car category, just months before the government finalizes the CAFE 3 fuel efficiency and emissions framework.

The issue has reached Road Transport and Highways Minister Nitin Gadkari after several automakers raised concerns about the idea and its long-term impact on safety, investment plans, and upcoming product development. The proposal, reportedly pushed by Maruti Suzuki and Toyota Kirloskar with support from Renault, seeks to classify cars weighing up to 909 kg as a separate segment. Most vehicles that fit this definition currently belong to the Maruti lineup.

However, other major carmakers including Tata Motors, Mahindra & Mahindra, Hyundai, Kia, and JSW MG Motor argue that such a move could create an unfair regulatory environment. They said the new segment would allow lighter cars to meet easier emission targets, placing other manufacturers at a disadvantage as they prepare for stricter norms starting April 2027.

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Industry representatives also warned that a weight-based category may unintentionally promote cars that fall short of global safety standards. Many of the models under 909 kg have not performed well in international crash tests, raising fears that lenient rules could encourage 'architecturally unsafe' vehicles.

In a joint submission, companies noted that India already has a clear classification system for small cars based on length and engine size. They said introducing a new category based solely on weight would undermine long-term investment strategies and disrupt product roadmaps built over several years. They also pointed out that no major global market uses such a classification, calling the proposal arbitrary and lacking precedent.