Proposed fuel efficiency policy for passenger cars

The Bureau of Energy Efficiency (BEE) has released a draft policy on Friday that proposes to improve fuel mileage for passenger cars.

Cars will have to be labelled for their fuel efficiency and these government certifications will help consumers decide their future purchases. But experts believe the new standards are much lower than what the car industry has already achieved without certifications. The proposed standards are asking the car industry to meet a target of 0.8 per cent improvement between 2010 and 2015 and 2.2 per cent between 2015 and 2010.

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Source: Deccan Chronicle

Edmunds CEO to Congress: Consumers Voices Ignored

Edmunds.com CEO Jeremy Anwyl told Congress last week that consumer voices were ignored when the Obama administration laid out its latest proposal for future Corporate Average Fuel Economy (CAFE) standards, and that consumers are not on board with those standards.

Earlier this year, the Obama administration announced plans to raise the CAFE standard to 54.5 miles per gallon by 2025, which almost doubles the current standard of 30.2 mpg. Edmunds.com says that there is reason for consumers to be concerned that the high standards can only be reached through the development of new fuel-efficient technology that will likely drive vehicle prices higher.

Citing specific data gathered and analyzed exclusively by Edmunds.com and notable academics Dr. Ely Dahan and Dr. Anand Bodapati, Mr. Anwyl said that fuel efficiency accounts for only six percent of the typical consumer’s decision to purchase a particular vehicle. This number climbs to just 15 percent for consumers in the heavily cost-sensitive segment of subcompact vehicles.

“Any study of actual sales makes clear that — for the vast majority of consumers — fuel economy is simply not their primary motivating factor…

Source: Edmunds.com