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Govt mulls cash boost for fuel-efficient auto firms
Mint Chennai
|July 06, 2026
Tata Motors PV, Maruti Suzuki could be Tesla-like beneficiaries of credit trading
The government is weighing a proposal to reward carmakers that have exceeded India’s fuel-efficiency requirements since financial year 2023 by allowing them to sell surplus compliance credits to peers who missed their targets.
This could create a new revenue opportunity for firms such as Tata Motors Passenger Vehicles and Maruti Suzuki, who have met their targets over the past few years.
A 19 May draft notification by the power ministry, reviewed by Mint, proposes a ‘credit-debit passbook system’, under which manufacturers that exceeded their Corporate Average Fuel Efficiency (CAFE) Phase II targets between FY23 and FY27 can sell surplus compliance credits to their lagging peers.
This story is from the July 06, 2026 edition of Mint Chennai.
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