Proposed fuel-efficiency ratings for cars by the Bureau of Energy Efficiency leaves industry experts confused

Last year was tough in terms of inflation and fuel prices. Therefore, the news that the Bureau of Energy Efficiency (BEE) has set regulatory standards and star ratings for the car-manufacturing industry seems, at first, like a step in the right direction.

Formed in 2002 by the Union Ministry of Power, BEE plays a crucial role in testing and evaluating the energy efficiency of household electrical appliances including refrigerators, air conditioners and water geysers. These appliances are then labelled with star ratings to help you make informed choices and opt for energy-efficient devices that save money on electricity bills.

In November last year, BEE released a consultation paper that defines fuel-efficiency standards (based on fuel consumption in litres per 100km) and recommended a star rating (based on a five-star scale, with five being most efficient and one the least) to help you compare the fuel efficiency of different car models within the same weight class.

However, it is the Automotive Research Association of India (ARAI) that tests and evaluates cars sold in the Indian market on a range of parameters like vehicular safety features, automotive equipment and fuel efficiency. Therefore, the recent announcement has caused confusion. It is unclear if the BEE fuel efficiency ratings and labelling will work in conjunction with existing ARAI ratings or replace them.

Delhi-based automobile industry expert Bunny Punia (Gaadi.com) explains, ‘Cars in India are already certified by ARAI for fuel economy under a standard test cycle. These are standalone figures not linked to price, weight or engine capacity.’

‘However, the new BEE norms will measure and rate the fuel efficiency of cars in various segments based on weight. This isn’t practical as weight is not the best parameter to differentiate between cars or make new segments. For example, a diesel sedan, Tata Indigo TDI, will be considered in the same segment as a petrol hatchback like the Volkswagen Polo 1.6. These two cars differ in size, fuel efficiency and price.’

Preliminary estimates by the BEE indicate that presently only 9-16% of car models sold in India can be described as energy-efficient. The government is hoping the star ratings will help push manufacturers to bring down the average fuel consumption of cars in India.

Until the government clarifies whether the ARAI ratings are being replaced or modified, the new star ratings will only serve to confuse car manufacturers  and consumers alike.