New Delhi, Feb. 27 -- A NITI Aayog report seeking to promote small cars and hybrids to reduce vehicular pollution has again brought the spotlight on India's divided automobile industry.

Tata Motors Passenger Vehicles Ltd has objected to the report prepared by a government panel under NITI Aayog to promote small cars under the upcoming fuel efficiency norms, and increase the adoption of multiple-fuel vehicles and hybrids, alongside electric vehicles (EVs).

However, Toyota Kirloskar Motor Ltd, the Indian joint venture of Japan's Toyota Corp., praised the plan for a phased electrification approach and the inclusion of biofuel powertrains as zero-emission vehicles, according to a letter reviewed by Mint.

The contrasting views mirror differ...