The controversy is linked to compliance with the Corporate Average Fuel Efficiency (CAFE) norms regulating vehicle emissions. According to Mahindra, the assessment period for FY2023 was from April 1,

Until yesterday, news reports claimed that carmakers like Hyundai, Kia, Honda, Mahindra, Skoda, Nissan, Renault and Force Motors would have to pay a hefty fine totaling Rs 7,300 crore for violating fleet emission norms,

Mahindra also said that any penalty could not be applied retrospectively, and the company does not expect any “material liability” for FY2023.

"Applying the amended penalty under EC Act for the full period of FY2023 would mean the penalty is being applied retrospectively, which is incorrect. Hence, the company doesn’t expect any material liability for FY2023,