Government to raise average mileage requirement to 18.2 km/l

The prices of fuel continue to be a major deciding factor in purchase decisions along with product development and marketing. While consumers continue to demand better efficiency figures, it looks like the government wants car makers improve their product frugality as well. As per a recent report, the government has notified automakers of new fuel efficiency guidelines that must be followed from April 2017.

Across a manufacturer’s range, vehicles will be expected to deliver an average fuel economy of 18.2 km/l i.e. a 15% increase over the existing average mileage requirement.

It is important to note that the rule is a reference to the average fuel economy and not the figure per model. This means that a manufacturer can offer models that deliver less than 18.2 km/l, but have to balance it out by offering a product with better efficiency figures.

The finer details for the implementation and procedures for penalties will be decided by the Ministry of Road Transport and Highways in due course. These standards have been framed by the Bureau of Energy Efficiency. According to an agency executive, benefits in terms of fuel savings from this could be more than Rs 90,000 crore a year for India. From April 2022, the average limit will be lifted to 22 km/l. Separate standards are likely to be announced for trucks and buses.

Source: ET Auto

Redlining the Indian Automotive Scene