Mahindra & Mahindra also came out with a clarification on this report on Thursday evening, saying to the best of its knowledge, no penalties, as mentioned in the report are being considered by the government.
29 Nov 2024 | 3921 Views | By Autocar Professional Bureau
Hyundai Motor India, the country's second largest carmaker, has taken issue with media reports alleging that it, along with some of its peers, may be slapped with aggregate penalties of around Rs 7,200 crore.
It said it has not received any formal or informal communication from the government in ...
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Hyundai Motor India, the country's second largest carmaker, has taken issue with media reports alleging that it, along with some of its peers, may be slapped with aggregate penalties of around Rs 7,200 crore.
It said it has not received any formal or informal communication from the government in this regard, and also took issue with the way The Financial Express has calculated the penalties.
"The article is based on extrapolations, which exercise itself is based on the incorrect premise that the 2022 amendments to the Energy Conservation Act, 2001 (“EC Act”), prescribing stricter penalty norms compared to the preceding law, were effective prior to 1st January 2023. Therefore, the story of penalty or the quantum of penalty is more fictional than based on facts or laws applicable to facts," it said.
On Thursday, a media report said automakers including Hyundai, Kia, Mahindra, and Honda exceeded mandated fleet emission levels during the financial year 2023, potentially facing penalties of approximately Rs 7,300 crore. The report said Hyundai could face a penalty of Rs 2,837.8 crore.
Mahindra & Mahindra also came out with a clarification on this report on Thursday evening, saying to the best of its knowledge, no penalties, as mentioned in the report are being considered by the government.
CAFE, or Corporate Average Fuel Efficiency, norms are government-mandated standards that require automakers to meet specific fuel economy targets for their entire fleet of vehicles. CAFE 2 norms assessment period for 2022-23 was from April 1, 2022 to March 31, 2023.
The media report said the penalty is on the back of stricter CAFE norms brought into effect in 2022-23. However, the automakers said the Energy Conservation Act, 2001 was amended in December 2022 to include penalties for OEMs not complying with the norms and the amendment is effective only from January 1, 2023.
HMIL said it was reaffirming its commitment to maintaining the highest standards of compliance and transparency. The company assured stakeholders that it remains proactive in adhering to regulatory requirements and will continue to notify relevant exchanges of any material information as mandated.
Hyundai Motor India has requested stakeholders to disregard any misleading reports on this matter and reiterated its dedication to compliance and sustainable practices in the automotive industry.
Apart from Hyundai, the news report said M&M and Kia could face a penalty of Rs 1,788.4 crore and Rs 1,346.2 crore, respectively. Honda, Renault, Nissan, Skoda and Force Motor are the other carmakers mentioned in the report.