New Delhi, Feb. 6 -- Maruti Suzuki is likely to bear the brunt after the central government scrapped a planned concession for small cars under the upcoming fuel-efficiency rules. A draft released in September last year had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less, a move that was widely seen as favouring the carmaker.

The company dominates India's small-car segment, controlling nearly 95% of the market, prompting rival automakers, including Tata Motors and Mahindra & Mahindra, to flag the proposal as giving it an unfair competitive advantage, news agency Reuters reported.

Following the industry pushback, the Power Ministry has now dropped that exemption and tightened other parameters, increasing pressure on a...