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Govt plans fuel efficiency ratings
Nidhi Francis, Bloomberg UTV
Published on Mon, Dec 28, 2009 at 21:05 IST

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NEW DELHI: How fuel efficient is your car? Well, now you will not have to accept the word of the manufacturer. The power ministry's Bureau of Energy Efficiency (BEE) is launching fuel efficiency ratings for all cars. At the time of buying the car, you can demand its efficiency rating. Currently, the rating is voluntary but the bureau hopes that consumer awareness will force all auto companies to acquire the ratings.

On a scale of one to five, a five star rating would be the most efficient. The auto industry is not excited about the ratings plan....  

Dilip Chenoy, director general, Society of Indian Automobile Manufacturers Association (SIAM), said: "We do not know how the model goes as far as long-term vision goes. This aspect has not been specified by BEE... there is no long-term plan laid out..."

BEE plans to charge a registration fee of Rs 2,000 per vehicle for getting the star rating. Rs 1000 will be charged additionally to assess the performance of the engine and Rs 1,500 will be charged as the renewal fee for the rating. Auto companies will have to get a rating for each model and its variants before their commercial launch.

The move could cost the industry up to Rs 50 crore per year. The auto industry sees the ratings only as a revenue generating gimmick by BEE.

The ministry of roads and transport is also putting pressure on the auto makers to put a efficiency grid in place. Hopefully, BEE and the road ministry will be able to develop a common code for measuring fuel efficiencies of vehicles.

If done well, the ratings could offer an independent validation of fuel efficiency claims...

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