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Indian Auto Industry Divided Over Proposal for New Light-Weight Mini-Car Segment

TL;DR

India's auto industry is split over a proposed light-weight mini-car category, with some manufacturers advocating for it and others raising concerns about safety and fair competition.

A significant debate has emerged within India's automotive sector concerning a proposal to introduce a new category for light-weight mini-cars, weighing up to 909 kg. This division comes just months before the government is set to finalize the CAFE 3 (Corporate Average Fuel Economy) framework for fuel efficiency and emissions.

The proposal, reportedly spearheaded by Maruti Suzuki and Toyota Kirloskar with support from Renault, primarily benefits vehicles already within Maruti's portfolio. However, other major automakers, including Tata Motors, Mahindra & Mahindra, Hyundai, Kia, and JSW MG Motor, have voiced strong concerns. They argue that such a classification could create an unfair regulatory landscape and potentially compromise vehicle safety standards. Critics also highlight that cars in this proposed weight bracket have not consistently achieved strong ratings from international safety bodies, suggesting that softer emission norms for this segment could inadvertently promote less safe vehicles.

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