Hyundai Motor India Refutes Reports on ₹7,300 Crore Emission Penalty

​Hyundai Motor India Limited (HMIL) has dismissed media reports alleging that the company, alongside other automakers like Mahindra and Kia, may face a staggering penalty of ₹7,300 crore for breaching fleet emission norms. The automaker has categorically denied these claims, stating they are based on "extrapolations" and incorrect assumptions.

Hyundai’s Response

In an official statement issued on Friday, HMIL clarified that the articles relied on a flawed understanding of regulatory amendments to the Energy Conservation Act, 2001 (EC Act). Hyundai explained that the stricter penalty norms introduced through the 2022 amendments only became effective on January 1st, 2023. Reports suggesting penalties for emissions breaches before this date are, according to the company, legally unfounded.

"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," Hyundai’s statement read. "Therefore, the story of penalty or the quantum of penalty is more fictional than based on facts or laws applicable to facts."

No Formal or Informal Notice

The company further asserted that it has received no formal or informal notice regarding any penalties associated with 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," the statement emphasized.

Commitment to Compliance

Hyundai reaffirmed its commitment to regulatory compliance and transparency. The company highlighted its proactive approach to maintaining high standards of governance, particularly following its recent listing on the stock exchange.

"The Company, following its recent listing, remains committed to ensuring the highest standards of compliance and transparency in all its disclosures. It will continue to promptly inform the exchanges of any material information as per regulatory requirements," HMIL added.

Hyundai’s Successful IPO

Hyundai Motor India’s IPO, which concluded on October 17th 2024, marked a significant milestone for the company. The ₹27,870 crore initial public offer was oversubscribed 2.37 times, garnering 23.63 crore bids against the 9.98 crore shares available. Despite subdued participation from retail individual investors (RIIs), the IPO reinforced Hyundai’s market standing and investor confidence.

Industry Context

The allegations come amidst growing scrutiny of emission standards globally and in India. Regulatory frameworks are tightening to align with global sustainability goals. However, Hyundai’s strong rebuttal and clarification underline the importance of accurate reporting on such critical issues, especially in a rapidly evolving regulatory landscape.

As the Indian automobile sector continues its transition towards greener technologies, automakers like Hyundai remain at the forefront of compliance and innovation. The company’s firm stance against these allegations reiterates its dedication to adhering to regulatory requirements and maintaining transparency with stakeholders.

This denial from Hyundai reinforces the criticality of basing claims on verified facts, particularly in an industry as dynamic as automotive manufacturing.

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