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Indian Govt Standards to enhance fuel efficiency by 20 Percent


Government of India will soon implement new regulations making it mandatory for car makers to enhance per kilometer mileage by ~20% in the coming eight years.  Cars need to be rated depending on their fuel efficiency from next year. Five star labeling will be acquired by the most fuel efficient car in a particular weight category, while the lowest will have one star rating. Cars which do not fall between one to five ratings need to be phased out. Car makers failing to adhere to the new fuel economy rules will be penalized depending on the variation from the standard.

Government aims to raise the average fuel mileage to18.1 kms/litre by 2015 and 20.79 kms/litre by 2020 from the current 16.6 kms/litre. The implementation of this regulation can lead to 8-10% rise in car prices, extra cost incurred by the car purchasers could be recovered in three years and saving three metric tonnes of fuel by 2015. However, this can also result in decline in car sales.

Source: Hindustan Times

Friday , 24   August , 2012