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Fuel Economy Standards

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The Chinese Ministry of Industry and Information Technology (MIIT) published the proposal for the phase 4 fuel economy standard (FES) on January 21, 2014 and it is available for commenting. It regulates, similar to the US CAFE and the European CO2-Standard, the fuel consumption of domestically manufactured and imported passenger vehicles for the years 2016 through to 2020. Under the new rule, the overall fleet-average fuel consumption is projected to be 5.0L/100km by 2020 as measured by the New European Driving Cycle (NEDC). Compared to the Phase 3 standard, which sets the target for the corporate-average fuel consumption (CAFC) to 6.9L/100km, the new consumption target is 28 percent lower.  In addition to CAFC targets, the proposal sets vehicle-specific limits to individual car consumption. Both standards have to be met by the manufacturers and importers. Similar to the current third phase, the proposal incorporates extra credits for new-energy vehicles (battery-electric, fuel…