China sets punitive measures for fuel efficiency target violators

Article by Andrew Christian, on October 17, 2014

China vowed to penalized carmakers who failed to meet fuel consumption requirements on passenger vehicles set for next year by setting a limit on their production and naming them on public. China also said it would ban the production of new models that failed to meet the target and will reject expansion plans by carmakers who weren’t able to abide by the measures.

The carmakers will also be made to submit improvement plans. The measures are expected to prompt both foreign and local carmakers to pursue and adopt emission-cutting technologies like gasoline-electric hybrids and all-electric cars.

China's fuel economy rules call for a fleet-wide corporate average target of 34 mpg (6.9 liters per 100 kilometer) next year and 47 mpg (5.0 liters per 100 kilometer) in 2020. The measures take effect on Nov. 1. The fuel economy number will be determined by a special weight-based formula.

According to James Chao, director of IHS Automotive for the Asia-Pacific region, the punitive measures for 2015 "may not matter in a practical sense," since most carmakers are expected to be able to meet the requirements. He, however, noted that if similarly tough penalties will be imposed over fuel efficiency targets in 2020, few carmakers would be able to comply on a corporate average fuel efficiency basis.

The fuel consumption rules were published by five government agencies including the Ministry of Industry and Information Technology. The measures are another part of China’s fight against pollution.

The Chinese government has already limited car sales in major cities and been giving incentives for selling electric vehicles. In 2013, around 30 percent of carmakers in China – mostly local brands – failed to meet annual corporate-average fuel consumption for the year, according to results published by MIIT.

Topics: china, fuel economy

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