Fuel efficiency norms to be tightened as govt seeks to push automakers to make more electric vehicles


Fuel efficiency norms to be tightened as govt seeks to push automakers to make more electric vehicles

The government is set to tighten fuel efficiency norms for vehicles to push automobile manufacturers to expedite the conversion of conventional internal combustion engines (IECs) to electric vehicles (EVs). Sources said producing a certain share – about 4-6% – of their vehicles on electric mode will help them meet the tighter CO2 emission norms.

In its report, a panel headed by road transport secretary Y S Malik has made this recommendation as a part of its 15-point strategy. Arguing for tighter targets, the report said, “To have approximate induction of 3 to 5% EVs, as against total manufactured vehicles, the fuel efficiency norms have to be lower by 20-25% over FY 2017-18 data. This approach has to be adopted for cars, three-wheeler and two-wheeler industry.”

The transport ministry has mandated fuel efficiency norms that require cars to be 30% more fuel efficient by 2022, which will reduce the CO2 emission.

To push supply of EVs and their components, the panel has recommended granting weighted deduction on the lines of deductions provided for investment in scientific research and development besides disincentivising imports by providing certain degree of protection to domestic manufacturing. Read More

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