India’s pursuit of operational fuel efficiency in vehicles is a story of potential, progress, and missed opportunities. The introduction of Corporate Average Fuel Consumption (CAFC) standards in 2017 was a much-needed step to regulate the energy consumption of passenger cars. These standards aimed to curb average fuel consumption to 5.49 litres per 100 kilometres (or 129.8 g/km CO2) and, subsequently, to 4.77 litres (113 g/km CO2) by 2022-23. While these regulations set the stage for a shift, their targets, though commendable on paper, reveal significant gaps in ambition.
The average fuel efficiency of passenger cars is 5.4 litres per 100 kilometres, trailing behind global leaders like the European Union, where it stands at 4.1 litres. Despite the rollout of Bharat Stage VI norms demanding stricter emissions, the adoption of advanced fuel-efficient technologies has been sluggish.
India’s dependence on oil imports, standing at a staggering 85%, underscores the urgency of fuel efficiency measures. Transport alone accounts for 60% of the nation’s petroleum consumption, and the freight sector plays a dominant role in this. According to the International Energy Agency (IEA), India’s road transport energy demand is expected to more than double by 2040, propelled by economic growth and urban expansion. Despite these realities, CAFC standards have faced delays and resistance from industry stakeholders, often citing economic slowdown and the costs of transitioning to Bharat Stage VI norms as primary concerns.
A closer look at the weight dynamics of India’s vehicle fleet reveals a unique advantage. The country has long benefited from its market dominance of small, lightweight cars, which naturally exhibit lower fuel consumption. However, this advantage is under threat. As consumer preferences shift toward heavier SUVs and sedans, the average fleet weight has begun to rise. By comparison, Europe, with a fleet weight averaging 1,400 kg (against India’s 1,050 kg), demonstrates a more aggressive approach. Despite their heavier vehicles, Europe achieved a fleet-wide CO2 emission standard of 95 g/km in 2021, well ahead of India’s targets. This disparity highlights the need for India to reassess its ambitions and enforce stricter regulations.
The technological landscape further illuminates the complexity of India’s efficiency challenge. Many manufacturers have exploited “super-credits”, a system designed to incentivise innovative fuel-saving technologies. While these credits have driven the adoption of features like six-speed transmissions and tire pressure monitoring systems, their actual impact on efficiency is debatable. Six-speed transmissions, for example, are standard in luxury vehicles and bring minimal incremental benefits. In contrast, advanced technologies like regenerative braking, plug-in hybrids, and full electrification offer substantial energy savings yet remain underrepresented in India’s strategy.
The oversight extends beyond passenger cars. Heavy-duty vehicles (HDVs), the largest diesel consumers, have yet to see effective implementation of fuel efficiency standards, despite regulations being notified as early as 2016-17. These vehicles represent a critical segment, contributing significantly to both carbon emissions and energy consumption. Similarly, the two-wheeler segment, which accounts for nearly 60% of the country’s petrol consumption, lacks concrete benchmarks. While these vehicles have traditionally been low-powered and efficient, a rising trend toward larger engines threatens to erode these gains.
India’s approach to fuel efficiency must evolve to keep pace with global trends and domestic realities. Setting ambitious targets for 2026 and 2030 is imperative, ensuring alignment with international best practices. The adoption of robust super-credit mechanisms, prioritising impactful innovations over incremental ones, can drive technological advancement. Transparency in compliance reporting and the introduction of mandatory fuel-efficiency labels will empower consumers to make informed decisions, creating market-driven demand for efficient vehicles.
The future of fuel efficiency in India lies in deploying advanced technologies tailored to its market and needs. On the engine side, low-friction lubricants and improved engine designs can cut CO2 emissions by 1-3%, though the adoption rate for such technologies in India is currently below 30%. Hybridisation offers even greater potential, with mild hybrids improving fuel economy by 15-25% and strong hybrids by 30%. However, hybrids remain a rarity in India, accounting for less than 5% of vehicle sales.
Advanced transmissions, such as eight-speed dual-clutch systems, bring an 8-12% boost in efficiency, though their presence in India is largely confined to luxury cars. Mass reduction through lightweight materials offers another 5-10% improvement but remains constrained by cost barriers. Beyond hardware, digital solutions like fleet telematics and AI-driven driving optimizations present opportunities to cut operational inefficiencies, particularly in the logistics sector, which accounts for 60% of diesel consumption in India.
The journey toward greater fuel efficiency requires investments in both current and emerging technologies. Second-generation biofuels hold promise, particularly as India aims to achieve a 20% ethanol blending target by 2025. Research into lignocellulosic and algae-based biofuels could revolutionize India’s energy mix.
Green hydrogen, a centerpiece of India’s decarbonisation strategy, offers the potential to decouple transport from fossil fuels. With a production target of 5 million tonnes by 2030, scaling up cost-efficient green hydrogen solutions could transform the sector. Meanwhile, advancements in battery technologies and storage systems will be critical as India transitions to electric vehicles, reducing reliance on oil-based fuels.
Finally, AI and big data analytics are poised to revolutionise fleet management, with predictive maintenance and real-time analytics capable of reducing fuel wastage by 10-15%. These innovations, when coupled with robust policy support, could pave the way for a cleaner, more efficient transportation future.
To truly curb its growing carbon footprint and reduce energy dependency, India must act decisively. A combination of tighter standards, incentives for electrification, and targeted policies for underregulated segments like HDVs and two-wheelers will pave the way for a sustainable future. In this journey, every kilometre matters, and the road to efficiency must be paved with ambition and innovation. With the right mix of policy reforms, technological innovations, and public awareness, India can drive a revolution in operational efficiency. Each drop of fuel saved is a step closer to a brighter, cleaner tomorrow. Let’s put the pedal to the metal and accelerate toward this vision – one kilometre at a time!