The Government of India is very serious about improving the fuel economy of vehicles that ply Indian roads.
The Bureau of Energy Efficiency will soon introduce fuel efficiency labels on cars to allow consumers choose wisely while buying a car. This system will be on the lines of the ‘energy labels’ found on electronic goods. The system has certainly made an impact as consumers did not have to go into the technicalities of each consumer good. They were able to make a decision by referring to the energy labels that categorized products in five groups with the products with the most number of ‘stars’ being the most energy efficient.
Similarly, cars will now carry ‘energy labels’ depending upon how fuel efficient they are. What the energy labels on electronics did is that, those goods which scored low on the savings front were not being sold and manufacturers then had to make their products efficient in order to keep sales up. Same could be true for cars as automakers will have to make their cars more fuel efficient as possible.
The government of India aims to improve fuel efficiency by 20-25 percent by 2015 as more and more heavy vehicles now on roads the average figures have plummeted. Automakers will have to ensure they meet the norms as failing to do so would attract heavy penalties. The new policy could pave the way for hybrid cars in India. Diesel-hybrids are gaining popularity day by day for being economical compared to their standard diesel as well as petrol counterparts. We expect premium automakers like Volvo, BMW, Audi and Mercedes who currently sell big, gas guzzling SUVs in the country to offer an option of a hybrid in their line-up in the near future.