18 Jun 2024

Buy a car soon… If this proposal of BEE is implemented then cars will be become costlier, see details

If you're considering purchasing a car, it may be advisable to do so sooner rather than later, as there is a possibility of car prices rising. The potential implementation of the new emission standards by the Bureau of Energy Efficiency (BEE) in the country could lead to increased costs for cars. This could result in higher prices for vehicles, with the average cost of cars already having risen by over 50 percent in the past five years.

BEE has introduced stringent regulations

The Bureau of Energy Efficiency (BEE) has introduced stringent regulations in the third phase of the Corporate Average Fuel Efficiency (CAFE) program. As per this proposal, automobile manufacturers will be required to decrease carbon emissions by one-third within a span of three years. Failure to meet this target could result in fines for the companies. 

Companies are expected to submit their responses to this proposal by the first week of July. BEE will release updated guidelines based on the feedback received from the companies. Following the adoption of the BS 6 standards in April 2020, the average cost of cars has risen by approximately 30 percent.

…then the government will get more power

The latest proposal from BEE grants the government authority to mandate the use of non-fossil fuels within the automotive sector, establish efficiency benchmarks for vehicles, and establish a domestic carbon trading market to expedite the shift towards cleaner energy sources.

New targets under CAFE 3 and CAFE 4 norms

BEE has proposed new targets under CAFE 3 and CAFE 4 norms, with limits set at 91.7 grams of CO2 per kilometre and 70 grams of CO2 per kilometre, respectively, based on the World Harmonised Light Vehicles Testing Procedure

Following the enforcement of the 2021 BS 6 standard, cars experienced an increase in price. The average carbon dioxide (CO2) emission limit set for car manufacturers in the country stands at 113 grams per kilometer. However, a penalty of Rs 25,000 per car will be enforced for emissions exceeding this limit by up to 4.7 grams per kilometer. In cases where CO2 emissions surpass the specified limit of 4.7 grams per kilometer, a fine of approximately Rs 50,000 will be levied on each car.

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