A new set of rules with regard to fuel efficiency have been revealed by Prime Minister's Office. It is revealed that through this dictat, the government is planning to grade cars on the basis of fuel efficiency. PMO has approved this new set of standards whereby auto manufacturers will have to ensure that their new vehicles deliver enhance fuel efficiency to the tune of 20 to 25%. Once implemented, this will mean huge savings for car buyers.
It will ensure savings of about 3 million metric tons of oil per year by 2015 while 11 million metric tons will be saved by 2025 and 20 million metric tons will be saved by 2030. This accomplished, India will be able to save $2.5 billion per annum by 2015, $9 billion per year by 2025 and $16 billion per year by 2030. Society of Indian Automobile Manufacturers (SIAM) is unhappy with this stipulation coming from the PMO.
They feel it is unrealistic and impossible to achieve specially considering the high investment involved in research and development along with the fact that Indian cars will no longer be able to compete with their foreign counterparts. But the PMO has already forwarded this new notification to Bureau of Energy Efficiency asking them to build a consensus among shareholders which will include Ministry of Heavy Industries and the auto sector while it will be sent ahead to Road and Transport Ministry for final execution.
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