India’s auto sector is locked in a dispute over a proposed sub-909kg mini-car category, with major manufacturers warning it could dilute safety norms and distort regulations as the government prepares to finalise stricter CAFE 3 fuel efficiency and emissions standards
India’s car industry is sharply divided over a plan to introduce a new light-weight mini-car segment. The disagreement comes just months before the government finalises the CAFE 3 fuel efficiency and emissions rules.
Issue reaches Gadkari’s office
The matter has landed before road transport and highways minister Nitin Gadkari after several manufacturers raised concerns. They said the proposal could affect safety standards, future investments and upcoming products.
Push for a new under-909kg segment
According to reports, Maruti Suzuki and Toyota Kirloskar, along with Renault, are pushing for a new category for cars weighing up to 909kg. Most of the models that would qualify are from Maruti.
Other carmakers say such a move could create an uneven regulatory system and weaken safety requirements.
Strong opposition from major companies
Carmakers like Tata Motors, Mahindra & Mahindra, Hyundai, Kia and JSW MG Motor attended a meeting with Gadkari to raise objections. They argued that the proposed category would make emission targets easier for only a small group of vehicles, while the rest of the industry prepares for tougher norms from April 2027.
Safety concerns flagged
Opposing companies warned that a weight-based segment could encourage production of cars that do not meet global safety expectations. They noted that most vehicles likely to fall under 909kg have not performed well in international safety tests.
Giving this group relaxed emission norms, they said, may end up promoting an “architecturally unsafe” class of vehicles.
Existing classification already clear
The joint industry submission said India already has a well-defined “small car” category based on length and engine size. Vehicles under four metres with petrol engines below 1,200cc and diesel engines below 1,500cc receive tax and regulatory benefits.
Companies have aligned their long-term plans with this system, and any sudden weight-based change would disrupt years of product planning.
No global precedent
Manufacturers also pointed out that major global markets do not use a weight-based classification like the proposed 909kg limit. They said creating such a category would be arbitrary and out of line with international practice, forcing them to rethink ongoing and future projects.
Industry vs Japanese carmakers
The dispute has largely become a face-off between Maruti Suzuki–Toyota and the rest of the industry. Many companies met Gadkari without Maruti, Toyota or Renault present. They complained that the push for a 909kg category would mainly benefit Maruti, since around 95% of vehicles in that weight range come from its portfolio.
Fears of investment disruption
Companies told the minister that any shift to a weight-based rule would disturb investment timelines and new product development. “We plan our investments based on the existing small-car definition. A new 909kg category, which does not exist internationally, will derail product programmes,” officials said.
Maruti Suzuki did not respond to queries, according to the report.
When bikes hit the brakes, the whole auto story slows down
TEAM AUTO
India’s automobile industry grew only slightly in November, mainly because two-wheeler sales dropped, according to registration data released on Monday.
Scooters and bikes form nearly 75% of all vehicle sales. Their decline pulled industry growth down to 2%, even though cars, commercial vehicles and tractors grew 20%, 20% and 57% respectively.
Why sales fell
Two-wheeler registrations fell 3% as many buyers had already shopped during October’s festive season.
Delayed crop payments and uneven supply of popular models also affected demand.
Still, dealers saw strong customer visits, supported by GST cuts and marriage-season buying.
Registration picture
FADA data from the Vahan portal shows 3.3 million vehicles were registered in November, up from 3.23 million a year earlier.
FADA president CS Vigneshwar said most festive buying happened in October 2025, unlike 2024 when Diwali and Dhanteras fell late and lifted November sales.
Even so, November 2025 recorded 2.14% year-on-year growth.
GST boost
GST cuts and dealer offers kept customers coming in. Price reductions that spurred October buying continued to support November sales.
Passenger vehicle registrations rose 20%, helped by GST benefits, marriage-season demand, better supply of long-waiting models, and steady interest in compact SUVs. Inventory eased to 44–46 days, from 53–55 in October.
CV demand
Commercial vehicle sales remained strong, driven by infrastructure work, freight needs, tourism, government tenders and GST reforms. Fleet usage, however, varied across markets.
Positive outlook
Vigneshwar said improving rural sentiment and strong macro indicators should support near-term sales.
Rabi sowing has crossed 39.3 million hectares, ahead of last year, and a colder-than-usual winter forecast for northern and central India may increase mobility and logistics needs, helping the market further.
