Govt Rejects Automakers Plea, Keeps Small Trucks in Fuel Norms

The Indian government has rejected automakers push to exclude small trucks from new fuel efficiency rules. In its latest draft, the Bureau of Energy Efficiency (BEE) said light commercial vehicles (LCVs), including mini trucks, will fall under mandatory fuel standards.

The move ends months of lobbying by companies like Mahindra & Mahindra (M&M) and Tata Motors, who argued LCVs, especially under 3.5 tonnes, serve low-income users and should be exempt to avoid cost hikes. Despite these concerns, BEE included N1 category trucks, light vehicles under 3,500 kg gross vehicle weight, citing climate and cost-saving benefits.

“Passenger cars (M1 Category) are regulated under CAFE standards, but LCVs remain unregulated. Regulating LCVs will aid decarbonization and reduce fuel costs for small businesses,” BEE said.

In the financial year 2025, LCV sales in India stood at 582,852 units, down 2% from the previous year. Yet their impact on pollution remains significant. Though freight vehicles make up only 3% of total road traffic, they contribute to around one-third of road transport emissions.

BEE's draft rule proposes that for N1 category trucks, the average fleet emissions should not exceed 115 grams of CO₂ per kilometre under the Modified Indian Driving Cycle (MIDC) test. The limit may change after industry feedback. However, it applies to fleet averages, not individual vehicles.

BEE said it consulted automakers, testing agencies like ARAI, and ministries such as MoRTH before drafting the rules. Despite this, the auto lobby, particularly the Society of Indian Automobile Manufacturers (Siam), has expressed concern. It is now preparing a new submission seeking flexibility for LCVs and small cars. Industry has 30 days to comment.

“The agency has come out with the proposal fast… it appears the final draft will have regulations on the LCV category despite opposition from automakers,” said a source aware of the process.

While the rules aim to cut tailpipe emissions, experts caution that fuel efficiency norms alone won't solve pollution. “The condition of roads, vehicles, and traffic affects emissions. Trucks emit more in traffic jams than on highways,” said Gurudas Nulkar, professor at the Gokhale Institute of Politics and Economics.

Nulkar also said commercial vehicles are often poorly maintained. “Vehicles run on the streets, not in labs,” he added.

This draft follows India’s push for cleaner commercial vehicles, including a recent scheme to subsidize electric trucks under the ₹10,900 crore PM E-drive scheme, with ₹500 crore allocated for zero-emission trucks.

Once the feedback window closes, BEE will forward its final proposal to MoRTH. If cleared, the new fuel efficiency rules will take effect by April 2027, covering light, medium, and heavy commercial trucks.

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