Hyundai Motor India has dismissed media reports suggesting that it, along with other automobile companies like Mahindra and Kia, may face penalties amounting to ₹7,300 crore for breaching fleet emission standards.
In a statement released on Friday, the company said the reports are based on "extrapolations" that lack factual accuracy. Hyundai emphasized that the claims stem from a misunderstanding of the timeline regarding amendments to the Energy Conservation Act, 2001 (EC Act).
Hyundai clarified that the 2022 amendments to the EC Act, which introduced stricter penalty norms, became effective only from January 1, 2023. As such, any assertions about penalties for alleged violations before this date are "fictional" and have no legal basis.
"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, 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," the statement said.
Hyundai also noted that it has not received any official or unofficial communication regarding penalties related to fleet emissions.
"The company has not received any formal or informal information or intimation regarding any penalty and has not heard of, formally or informally, the quantum mentioned in the said article. The company categorically denies the contents of the news article mentioned against its name," Hyundai said in its statement.
What Are Emission Rules Under the revised Corporate Average Fuel Efficiency (CAFE) norms, which came into effect in January 2023, automakers must ensure that their fleet's average fuel consumption does not exceed 4.78 liters per 100 kilometers and that carbon dioxide emissions are limited to 113 grams per kilometer. These regulations aim to mitigate the environmental impact of vehicle emissions.
Automakers, however, contend that since the stricter regulations were implemented midway through the fiscal year, penalties should not apply to the entire FY23 period. Industry representatives have indicated that discussions with the government are ongoing to seek further clarity on the matter.
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