In pursuance of the decision by PMO regarding the introduction of Fuel Economy Labels & Standards for Passenger Cars in India, extensive consultations have been carried out by the Ministry of Power (MoP), Ministry of Road Transport & Highways (MoRTH),Department of Heavy Industries (DoHI),Bureau Of Energy Efficiency (BEE) and Society of Indian Automobile Manufacturers (SIAM).
The annual fuel (petrol and diesel) requirement would be in excess of 25 million ton of oil equivalent. In view of the expected tripling of the car fleet in the next decade, and considering that the national import dependence for petroleum is already in excess of 70% and expected to increase further, and in the perspective of the declining air urban quality associated with increasing fuel consumption in cars (and in two-‐wheelers and in buses and trucks), it is important to provide strong signals to both car manufacturers and car users of the need to rapidly reduce the average fuel consumption of new cars.