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Tuesday, July 29, 2008

Mileage ratings for cars

The government of India is set to initiate a system of fuel economy ratings for cars by the year end that enables the buyer to know in progress what mileage to be expected from the car that one is planning to buy, and how it stacks up with other models in its class.

Initially, the car makers are expected to willingly get their models labeled by the selected agency on a scale of one to five stars, much like the system in place for refrigerators and Air Conditioners. By 2011-12, the fuel competence norms will be made compulsory for all passenger vehicles, and any car that fails won’t be allowed on the road after the cut-off date.

Besides helping the consumers to reach a more informed choice while buying a car of their budget and expectations, the government has estimated that the labeling standards would help to save about 5-15 million tones of fuel from the passenger vehicle segment by 2030.

To implement this efficiency norm, cars will be divided into eight categories, by mass, with the best and worst performers. Within the same weight category, say the small car section, the fuel efficiency of various models varies by as much as 60-70 percentages. So while the best model in the small car segment might give a consumer 20 kmpl, another might be giving a mileage as low as 8-10 kmpl.

By commanding standards, the government wants the poor performers to meet the efficiency levels set by the best in the industry. This will ensure two things. The consumer will get better performing new cars each year and auto manufacturers won’t be able to claim that they are being forced to go for costly technology instead they have to just use the best technologies already used in India.

The bar will be getting the reports of the higher and badly performing models, with the standard of being raised for each segment every couple of year - if they don't improve - will not be allowed to sell from 2011-12.

Things will start getting better for the consumers, from the last quarter of 2008 itself, which is when the government starts of putting mileage labeling of cars. Manufacturers for a fixed fee have to able to ask the government to test the car for mileage and then display the "star rating label".

The model that achieves the best fuel economy for its class, and meets intend standards set by the Bureau of Energy Efficiency (BEE) which is working under the power ministry, will be given five stars and the worst performers will be given one star. The label will be also displaying the mileage, as certified by the government, that the particular model gives. More importantly, this is to inform the consumer how that particular model performs in comparison with the best and the worst in its weight category.

At present, many studies have been conducted by BEE to show that none of the existing models are doing better enough to get five stars and three-fourths are falling between three to four star rating levels. Data of all the vehicles that manufacturers get tested by the government would also be put up on a website to help consumers to compare the figures even before they hit the markets.

With insistent advertising and community outreach, the government has intended to push all the manufacturers to get their models labeled starting 2008-end.

                

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