The Prime Minister's Office (PMO) has announced plans to start grading the vehicles on the grounds of their fuel economy, much on the likes of Bureau of Energy Efficiency's (BEE) standard grading scheme for electrical appliances. The move stems from the government's failed campaigns to maintain the fuel standards at par with the European Union that lasted for three years. Reportedly, the cars are going to be graded on a five star rating, based on its fuel economy. More stars would mean the vehicle is more economical in fuel consumption.
Speaking on the upcoming grading system, a top government officer said, “It would be mandatory for the auto mobile industry and manufacturers to ensure stipulated fuel efficiency mark as per the weight and design categories framed under the new standards. The move would push the fuel efficiency of the vehicles by 20-25 per cent, but that would be made possible in two phases - 2015 and by 2020.”
Notably, the Bureau of Energy Efficiency, which currently grades electrical appliances on terms of power consumption, has been roped by the government to formulate the proposed grading system for vehicles on its similar five stars pattern.
Reportedly, the proposed grading system will ensure oil savings close to 3 million metric tons by the year 2015, 11 million metric tons by the year 2025 and 20 million metric tons by the year 2030. In terms of monetary savings, the figures amount close to $ 2.5 billion per year (Rs. 13,835 crore) by 2015, $ 9 billion per year (Rs. 49,806 crore) by 2025, and $ 16 billion per year (Rs. 88,544 crore) by 2030.
However, the proposed move has not been well-received by the car makers. They oppose the proposed idea and according to them, the targets would be too difficult to achieve and desiring too much fuel efficiency in vehicles can result in cost cutting of safety parameters.
The apex industry body - Society of Indian Automobile Manufacturers (SIAM), which that represents 46 leading vehicle and vehicular engine manufacturers in India and provides a conduit for facilitating communication between the Automobile Industry with the Government, National and International organisations seemed particularly upset with the proposal.
SIAM's Director General Vishnu Mathur on the government's proposed grading system quoted, “No way it can be done… the government should not push us to achieve unrealistic targets as we won't be able to deliver on the proposed standards”. He further added, “It would require a lot of investments in research and development (R&D) and in that the Indian companies would not be able to compete with the foreign car manufacturers, say from Europe and Japan. They have huge investment scale for R&D, unlike the Indian market.”
It must be noted that the Indian buyers are obsessed with mileage and the government's proposed grading system would generate immense public interest and adulation if it is successful in inspiring fuel savings among the Indian manufacturers.
