Under the newly formulated fuel efficiency norms called Corporate Average Fuel Consumption (CAFL), the government of India has brought new rules specifically for passenger vehicles. With this, the passenger vehicles will be mechanised to deliver 14% more fuel efficiency from 2016-17. Moreover, this would increse to 38% in the later year thereafter. While, all these norms are meant for all diesel, petrol and gas runned vehicles.
The standards when implemented by ministry of road transport and highways, will place India amongst the select nations like the United States, Germany, Japan and China that are into strictly following the norms, and have put harsh penalties on violation of these.
After the implication of these standards, the passenger vehicles- including cars, vans and utility vehicles that currently offer 16kmpl, would later be mandate to deliver almost fuel efficiency of 18.2kmpl, and by 2021-22 offer exacting figures of 22kmpl.
The significant body of Indian automobile industry, SIAM reacted in a way that it will be difficult for manufacturers to work in accordance to these new norms. But in terms of economies of scale, there will be huge amount of fuel saved as well as the money spent on importing fuel.