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China to Impose Stricter Fuel Economy Rules
China has announced new fuel economy standards for passenger vehicles that would require them to boost average efficiency about 36% by 2020, Reuters reports.
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China has announced new fuel economy standards for passenger vehicles that would require them to boost average efficiency about 36% by 2020, Reuters reports.
Analysts say the rules, which were jointly issued by five government agencies, will help reduce the country's urban air pollution. But developing technology to meet the standard also will create a big financial challenge for China's dozens of small-volume domestic brands.
Current new-car fuel economy levels are not immediately available. But LMC Automotive tells Reuters the average in 2009 was 30 mpg. The new regulations will require an improvement to 34 mpg by 2015 and 47 mpg by 2020.
China, which first established fuel economy standards in 2004, sets targets according to vehicle weight. Current standards have 16 categories for cars, SUVs and MPVs covering weights from 1,500 lbs to about 5,500 lbs.
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