China: government to introduce punitive measures for carmakers that fail to meet 2015 fuel standards image

The world’s largest auto market, China, is set to introduce punishments for automakers that won’t comply with the government mandated fuel consumption levels for passenger cars in 2015.

The measures include production restrictions and a public panning by naming them if they don’t meet the new 2015 limits. The recently announced punitive actions are another testament to Beijing’s resolve to win the war against pollution and spearhead the introduction of energy efficiency standards.

China’s already announced fuel economy limits, effective November 1, have set a standard of fleet-wide corporate average of 6.9 liters per 100 km in 2015 and 5L/100 km in 2020. The limits have been aligned to global values, being just as stringent as those to be enforced in Europe, Japan and the US. The consumption targets would be developed using a special weight-based formula and carmakers failing them would be named publicly (an interesting effort towards corporate humiliation and modesty), but more importantly new models that don’t meet the standards would not be allowed to enter production and the company’s expansion plans would be capped until the fuel economy improves.

James Chao, director of IHS Automotive for the Asia-Pacific region, hinted that most carmakers would meet the 2015 target, but the tough punitive measures – if enforced for the 2020 threshold – “could have a very significant effect, given that few (makers) … are projected to be able to comply on a corporate average fuel efficiency basis.”

Via Reuters