We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Society of Indian Automobile Manufacturers (SIAM) appears to engage with mostly negative positions on Indian automotive climate policy in 2021-23.
Top-line Messaging on Climate Policy: SIAM has stated top-line support for India’s 2070 climate neutrality target, including in a June 2023 press release. While SIAM officials appeared to reference the Paris Agreement in a December 2021 press release, SIAM does not appear to have publicly stated a clear position on the accord.
Engagement with Climate-Related Regulations: SIAM has overall negative engagement with Indian climate policy. In March 2021, Reuters reported that SIAM had “led” negative advocacy efforts to delay the introduction of CAFE GHG emissions standards for light-duty vehicles in India from 2022 to a later date, including in a meeting with Indian transport ministry officials. SIAM’s 2020-21 Annual Report, published in September 2021, noted that SIAM CEO delegates had approached the Minister for Ministry of Road Transport and Highways of India to request a postponement in CAFE standards by a year from “2023 and 2024 respectively”. In a March 2022 Economic Times media report, Kenichi Ayukawa, former president of SIAM, further stated that the automotive industry has been pushing back against CAFE II emission norms in India.
Positioning on Energy Transition: SIAM has a mixed position on the transition to electric vehicles. In 2021-23, it appears to have advocated for multiple technologies to decarbonize the automotive sector, including battery electric, ICE-powered hybrid vehicles, and ethanol vehicles, such as in a January and February 2023 press releases. Similarly, a September 2022 statement from former SIAM President, Keinichi Ayukawa, promoted the use of “ethanol, flex-fuel, CNG, bio-CNG, hybrid electric, battery electric and hydrogen” to decarbonize light-duty vehicles. SIAM also appears to support the use of alternative fuels such as compressed natural gas (CNG) according to a statement by SIAM President, Vinod Aggarwal, in an April 2023 Energy World article. A July 2022 press release from SIAM also advocated for the expansion of CNG station infrastructure for vehicles in India.
Moreover, SIAM has consistently advocated for the use of biofuels as a vehicle decarbonization pathway in India, for example in a February 2023 press release and an August 2023 public statement by SIAM Executive Director, Prashant K Banerjee. According to multiple public communications, including an August 2022 press release SIAM has been promoting ethanol as a way to “enhance the life of ICE engines”, advocating for the roll-out of fully compatible E20 vehicles by 2025, and calling for support and incentives from the government. According to a press release, in January 2023, SIAM signed a Memorandum of Understanding towards the promotion of higher ethanol blends in the Indian gasoline mix.
More positively, according to SIAM’s 2021-22 Annual Report, SIAM appears to have directly advocated to policymakers for the extension of FAME Phase-II, which encourages electric and hybrid vehicle purchase through financial support. Similarly, SIAM advocated for the extension of the FAME scheme to increase EV penetration in July 2023 Business Today article.