Mahindra and Mahindra Ltd (M&M) and Tata Motors Ltd secured an early win in emission testing rules for light commercial vehicles, even as they oppose Maruti Suzuki India Ltd.’s demand for relief for small cars under the separate fuel-efficiency norms.
India has exempted N1, or light commercial vehicles (LCV) weighing less than 3.5 tonnes, from compliance under the Worldwide Harmonised Light-Duty Test Procedure (WLTP) for Bharat Stage (BS) VI emission norms. An April 2025 draft had proposed bringing these vehicles under WLTP, but the stricter test was formally notified only for passenger cars and light minibuses on 4 February. The rules will be effective April 2027.
The tests limit pollutants per vehicle under more realistic driving conditions, making compliance costlier than under the current Modified Indian Driving Cycle (MIDC) test.
The relief marks a major regulatory victory for Mahindra and Tata Motors, which account for about 70% of India’s LCV sales, protecting the affordability of the "bottom of the pyramid" transport segment. Mahindra’s models in the category include Bolero and Maxx pick-ups to Jeeto truck series, while Tata sells Ace, Yoddha and Ultra series of vehicles.
“In cities like Delhi, where restrictions on medium and heavy-duty trucks push a significant share of urban freight onto smaller N1 vehicles (light commercial vehicles), strengthening emission requirements for this segment becomes particularly important,” said Amit Bhatt, India managing director at the International Council on Clean Transportation. “Applying more rigorous and real-world-oriented testing to N1 trucks will help better manage emissions from last-mile freight movement, while cities plan a transition to electric.”
Industry lobbying
The exemption for LCVs follows sustained lobbying led by Mahindra, which wrote to the Union ministry of road transport and highways in June 2025, arguing that applying WLTP norms to LCVs would raise prices by 5–6% and hurt economically weaker sections.
The move also marks the second win for M&M and Tata Motors in recent months. Both had earlier secured consensus for an industry-wide push seeking exemptions for such light commercial vehicles under the proposed third edition of the corporate average fuel efficiency (CAFE) norms, which remain under discussion.
While BS VI norms cap pollutants emitted per vehicle, CAFE-III limits the maximum carbon dioxide emissions across a manufacturer’s fleet.
Carmaker faultlines
The development intensifies the tussle with Maruti Suzuki, which dominates the small car segment. M&M and Tata Motors have opposed any relaxation for small cars under the final CAFE norms, expected to be notified soon.
Maruti Suzuki, however, has argued that both small cars and light commercial vehicles cater to economically weaker sections and therefore deserve similar regulatory treatment.
Queries emailed to Tata Motors, Mahindra, Maruti Suzuki and the ministry of road transport and highways remained unanswered.
What is WLTP?
WLTP is a testing standard that measures a vehicle’s fuel efficiency, pollutant output and emissions before it is allowed to be sold. For electric vehicles, the test also helps determine real-world driving range.
WLTP cycles are longer and test vehicles at higher speeds and under varied driving conditions. As a result, vehicles typically record lower fuel efficiency and higher carbon dioxide emissions under WLTP compared to MIDC, which has been criticised for being less representative of real-world usage.
Who gains most
The exemption also disproportionately benefits Tata Motors and Mahindra & Mahindra, which together control over 70% of India’s light commercial vehicle market. The segment saw sales of more than 582,000 units in financial year 2025.
Mahindra held a 44% market share, Tata Motors 27%, while Maruti Suzuki accounted for about 6%.
“For N1 category vehicles, this segment is under stress and seeing degrowth. These vehicles are fulfilling the needs of the socio-economic population situated at the bottom of the pyramid. There would be cost impact of 5–6% due to WLTP, which would lead to reduced affordability and affecting livelihood of this segment of customers,” Mahindra wrote in a letter dated 30 June 2025.
The letter was signed by Velusamy R, president of automotive technology and product development at Mahindra.
On similar lines, Tata Motors and Mahindra & Mahindra have argued that mandating stricter fuel-efficiency or clean-technology requirements under CAFE norms could significantly raise costs in a highly price-sensitive segment.
A draft released by the Bureau of Energy Efficiency (BEE) on 28 July proposed extending CAFE norms to N1 category vehicles. While Maruti agreed to seek relief for light commercial vehicles, it also pushed the industry to demand similar concessions for small cars.
“Maruti Suzuki is genuinely supportive of the bottom of the pyramid consumer who is stretching hard to afford the purchase of an automobile," Maruti managing director and chief executive Hisashi Takeuchi wrote to Shailesh Chandra, president of industry lobby group Siam and managing director and chief executive of Tata Motors Passenger Vehicles Ltd, in a letter dated 17 October.
Takeuchi urged Chandra to convey Siam’s unanimous stand on light commercial vehicles to the government to seek relief from the emission norms.
“On the same principle, we feel that the super-small car segment has been under stress and, for scientific reasons, sees immense difficulty in meeting an almost impossible CAFE target," he added.