In what could lead to a tiff between the power ministry and automobile players in the country, the government on Tuesday said it will make energy efficiency labeling mandatory for automobiles by August.
?The move is aimed at certifying the energy efficiency claims of automobile makers, and helping consumers make choices. This will help car buyers in choosing the right quality of vehicle,? power ministry secretary HS Brahma said on Tuesday. However, the automobile industry feels there?s no need for it as currently they have to make fuel-efficiency declaration, which could form the basis for energy efficiency.
According to a source in the automobile industry, the first Steering Committee meeting is scheduled for July 2 wherein the issue will be discussed and a committee would be formed to enforce this.
While there has been no communication from the power ministry on this, either to the industry body Siam (Society of Indian Automobile Manufacturers) or to the car manufacturers, industry sources, say the ministry wants to introduce star-rating for cars, over and above the fuel-efficiency declaration that has been made mandatory from Siam since April this year.
?If the government makes energy efficiency labeling mandatory for cars, players will need to go and register themselves and every vehicle that they roll out with the Bureau of Energy Efficiency (BEE). Thereafter, if they fail to meet the energy efficiency standards set by BEE, they will have to pay a penalty,? said a source.
According to Brahma, Maruti Suzuki India, the country?s largest passenger car manufacturer with a market share of over 50%, has already showed interest in the process and the government would eventually initiate dialogue with other auto companies. FE could not independently confirm the same with Maruti officials.
?We have not received any mandate from the government on energy efficiency labeling and so it seems unlikely to get implemented as early as August,? said an official with one of the leading car manufacturers in the country. It was around two years back that the power ministry and transport ministry had proposed the concept, which has picked up momentum in consumer durables like air conditioners and refrigerators, but with Tuesday?s announcement it appears that the power ministry is gong ahead with it all alone.
This is contrary to other developed countries in North America and European Union where the matter lies entirely with the transport ministry that has formulated the Corporate Average Fuel Economy (CAFE) rating. According to the new rules announced recently in North America, all car manufacturers will have to shell out $1,300 per car and will have less than seven years to meet the new standards of 39 mpg (miles per gallon) for cars and 30 mpg for light trucks as against the current CAF? of 27.5 mpg for cars and 24 mpg for trucks.