Tata Motors, Mahindra and Mahindra and JSW MG Raise Concerns Over NITI Aayog Transport Report

By Jony Shekhawat | Published Date : March 05, 2026

Major automakers raise concerns over NITI Aayog’s report, saying some suggestions on future fuel efficiency rules could influence the direction of India’s automobile market.

India’s automobile industry is once again discussing policy changes after a transport report released by NITI Aayog. The report talks about future fuel efficiency rules and possible changes that could affect the vehicle market in the coming years.

But some major car companies feel that a few suggestions in the report may not fully support India’s long-term environmental goals. Because of this, companies like Tata Motors, Mahindra and Mahindra and JSW MG Motor India have raised objections and shared their concerns with the government think tank.

Automakers Send Objections to NITI Aayog

Table of Contents

1. Automakers Send Objections to NITI Aayog

2. Effect on the Wider Transport Sector

3. Debate on “Zero Emission Vehicle” Category

4. Tata Motors and M&M Clarify Their Participation

5. JSW MG Says It Was Not Consulted

6. Impact on Public Transport and Utility Vehicles

Read More: Discussion on Mahindra UDO with Suman Mishra, MD & CEO, Mahindra Last Mile Mobility

Three big automakers — Tata Motors, Mahindra & Mahindra and JSW MG Motor India — have reportedly written letters and emails to the policy body. Industry sources say these companies feel that some recommendations in the report could influence the vehicle market in a way that may not match India’s long-term emission reduction plans.

Automakers believe that before such suggestions become official rules, they should be carefully reviewed so that the entire automobile sector moves in the right direction. One of the main concerns is about the next phase of fuel efficiency rules known as CAFE-3 (Corporate Average Fuel Efficiency) norms.

Effect on the Wider Transport Sector

Automakers also say that fuel efficiency rules do not affect only cars. They influence the entire transport system in India. Manufacturers say that segments such as Tata trucks, Mahindra trucks, Ashok Leyland trucks, Volvo trucks, Force trucks and Tata mini trucks play a very important role in the transport and logistics industry. Because of this, companies believe policymakers should think about how new rules may impact these vehicles as well.

Debate on “Zero Emission Vehicle” Category

Another issue raised by automakers is about how certain vehicles are described in the report. The document reportedly places flex fuel vehicles (FFVs) and compressed biogas (CBG) vehicles under the “zero emission vehicle” category. Industry experts say this label may create confusion because these vehicles can still produce emissions while operating.

Automakers feel that clearer definitions are important so that government incentives and policies support the right technologies, including electric vehicles like electric trucks and other clean mobility solutions.

Tata Motors and M&M Clarify Their Participation

Both Tata Motors and Mahindra and Mahindra also clarified that they were mentioned in the report as “collaborators” or “experts”. According to the companies, they only attended stakeholder meetings and discussions. Their presence in these consultations does not mean they agreed with every suggestion mentioned in the report.

They also highlighted that such policy changes can impact many vehicle categories including logistics vehicles like the Tata truck, which are widely used across India.

JSW MG Says It Was Not Consulted

Meanwhile, JSW MG Motor India has said that it was not consulted before the report was finalized. The company believes wider discussions with industry players could have helped create more balanced recommendations. Experts often say that when policy changes affect the entire automobile sector, consultation with multiple manufacturers is very important.

Impact on Public Transport and Utility Vehicles

Industry observers say new regulations can affect many types of vehicles used every day in India. Public transport vehicles such as bus services, logistics vehicles like trucks and small utility vehicles like mini trucks and pickup trucks all serve different purposes.

These vehicles operate in different conditions and markets. Because of this, automakers believe future policies should consider the needs of each segment while still focusing on cleaner mobility.

For now, companies have asked NITI Aayog to review some parts of the report again. The ongoing discussion shows how difficult it can be to balance environmental goals, industry growth and the real needs of India’s transport sector — especially when the market includes everything from passenger cars to commercial vehicle technologies.

Also Read: Electric Buses Transforming India’s Public Transport System

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