Automakers Fined Rs 7,300 Cr for Emission Violations

28 Nov 2024 , 04:07 PM

Following news of penalties of Rs 7,300 crore, the shares of major manufacturers, such as Hyundai Motor India and Mahindra & Mahindra (M&M), were under pressure on November 27, 2024. Eight automakers received these fines from the Union Government for exceeding the required fleet emission levels in FY23 in accordance with Corporate Average Fuel Efficiency (CAFE) standards.

Hyundai Motor India, which accounts for about 60% of its FY23 revenues, risks the heftiest penalty of Rs 2,800 crore, according to the report, which was first published by The Indian Express. Another significant participant in the Indian auto industry, Mahindra & Mahindra, has been hit with a fine of Rs 1,800 crore.

Kia Motors, Nissan, Honda, Skoda, Renault, and Force Motors are among the other automakers that are subject to fines. Kia Motors is expected to spend Rs 1,300 crore for them.

In accordance with the stricter CAFE regulations, which went into effect in January 2023, automakers had to make sure that their fleets’ average fuel consumption did not surpass 4.78 litres per 100 kilometres and that their carbon dioxide emissions did not surpass 113 grammes per kilometre. The goal of these rules is to lessen the harm that vehicle emissions cause to the environment.

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