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India eases fuel rules for small cars, boosting Maruti Suzuki and delaying EV shift.
India is proposing to ease fuel efficiency rules for small petrol cars under 909 kg and 4 meters long, allowing them to claim extra carbon savings, which could benefit Maruti Suzuki, the leading small carmaker.
The draft rules, issued by the Bureau of Energy Efficiency, include an additional 3 g/km CO2 reduction credit and incentives for hybrids and ethanol-fueled vehicles.
The changes, aimed at acknowledging limited efficiency gains in small cars, are expected to reduce pressure to shift to electric vehicles in this segment.
The draft is open for public comments for 21 days, with final rules likely to take effect April 1, 2027, for five years.
Maruti Suzuki’s stock hit a record high following the announcement, though some automakers have raised concerns about fairness.
India flexibiliza las reglas de combustible para automóviles pequeños, impulsando a Maruti Suzuki y retrasando el cambio hacia los vehículos eléctricos.