Government to announce new fuel efficiency norms

Will be based on the CAFE standards followed in the US

The corporate average fuel efficiency rating buzz is about to hit India soon. The fuel efficiency rating standard, which has been prevalent in the developed nations since the early eighties, will now be put into practice in India as well. The fuel efficiency rating is calculated by dividing the sum total of the fuel efficiency rate of every model in a carmaker’s portfolio by the number of vehicles sold. The Government will set certain standards with regard to the fuel efficiency rating and any carmaker failing to meet the average will be penalised. This move will ensure that the carmakers produce more efficient and cleaner cars. 

The guidelines will be based on the Corporate Average Fuel Efficiency (CAFE) standards followed in the US, however, the Indian government is expected to take into account the quality of fuel sold in India. The rating system also takes into account the type of vehicle, its weight and engine specifications and market / taxation segment. The announcement of the new rating system is expected to be announced by the end of this month and will be put into full practice by 2015. The ratings will start with passenger cars and will later be filtered to other vehicles like two wheelers and commercial vehicles.