Strict Fuel Economy Standards Placed On Chinese Auto Industry

Long-awaited fuel economy standards have finally been imposed on the Chinese auto industry. The standards are being implemented as part of a larger attempt to cut down on the dangerous levels of air pollution in the country.

Air pollution is a significant problem in many parts of China, causing over $100 billion in damage to human health every year, via illness and death. As a result, some aggressive policies have been adopted in recent years, including the recent announcement of a £13,000 subsidy for electric vehicles. And now, strict fuel economy standards have been adopted as well.

The new rules, jointly issued by five different government bodies, will force passenger cars to lower their average fuel consumption “to 6.9 liters per 100 kilometers by 2015 and down further to 5.0 liters by 2020,” as Reuters notes.


 
“That’s going to be tough for everyone, especially those small players as they will have to use more fuel-efficient engines and invest in hybrid technologies,” said Yale Zhang, head of Shanghai-based industry consultancy Automotive Foresight.

As of 2009, the average passenger car in China uses about 7.8 liters per 100 kilometers.

“Chinese Premier Li Keqiang pledged on Sunday that his government would show even greater resolve in tackling China’s pollution crisis.”

While this is a good start, along with the aforementioned EV subsidies, air pollution will likely remain a significant problem in the country into the near future unless more aggressive actions are taken. It’ll be interesting to see what the government’s next moves will be.