Fuel consumption from new passenger cars in India: Manufacturers’ performance in fiscal year 2020

DECEMBER 2021

WORKING PAPER 2021-42

Fuel consumption from new

passenger cars in India:

Manufacturers’ performance in

ﬁscal year 2020–21

Authors: Ashok Deo and John German

Keywords: India CO

standards, corporate average fuel consumption, CO

compliance

and enforcement, GHG emissions, fuel eciency

Introduction

Passenger vehicles sold in India have been subjected to fuel consumption standards

established by the Ministry of Power since ﬁscal year (FY) 2017–18.

Since then, the

ICCT has evaluated how well manufacturers of new vehicles sold complied with the

standards.

Building on that, this paper examines the fuel consumption of manufacturer

groups for passenger vehicles sold in FY 2020–21 and evaluates their readiness to

meet more stringent requirements that will take eect in FY 2022–23. We evaluate new

passenger vehicle performance and identify basic vehicle speciﬁcations by fuel type

and manufacturer group. This paper also considers the potential impact of ﬂexibility

mechanisms on manufacturers’ compliance with the standards.

Additionally, the paper makes a technology comparison between best-in-class vehicles in

Europe and India. India had been closely tracing Europe in terms of carbon dioxide (CO

)

emissions for the past decade, but the gap widened in 2020, as Europe adopted stringent

regulations for 2025 and 2030. European manufacturers are adopting more advanced

technologies in conventional internal combustion engine vehicles and there has been

increased penetration of battery electric vehicles and plug-in hybrids in the market.

1 Passenger vehicles are considered M1 category if seating capacity is not more than eight seats, in addition to

the driver’s seat, and the gross vehicle weight does not exceed 3.5 tons. The category includes hatchbacks,

sedans, SUVs, and crossovers. Note that the ﬁscal year in India runs from April 1 to March 31 of the following

year. Ministry of Power, “Fuel Eciency Notiﬁcation,” April 23, 2015, https://beeindia.gov.in/sites/default/ﬁles/

Fuel%20Eciency%20Notiﬁcation%20%2823April2015%29.pdf.

2 Zifei Yang, Compliance with India’s ﬁrst fuel consumption standards for new passenger cars (FY 2017–2018),

(ICCT: Washington, DC, 2018), https://theicct.org/publications/compliance-india-fuel-consumption-standards-

pv; Ashok Deo and Zifei Yang, Fuel consumption of new passenger cars in India: Manufacturers’ performance

in ﬁscal year 2018–19, (ICCT: Washington, DC, 2020), https://theicct.org/publications/fuel-consumption-pv-

india-052020; Ashok Deo, Fuel consumption of new passenger cars in India: Manufacturers’ performance in ﬁscal

year 2019–20, (ICCT: Washington, DC, 2021), https://theicct.org/publications/fuel-consumption-pv-india-apr2021.

3 Flexibility mechanisms under the fuel consumption standards in India are super credits for electric vehicles,

plug-in hybrid electric vehicles, and strong hybrids, and o-cycle credits for technologies such as start-stop,

regenerative braking, tire-pressure monitoring systems, and 6-speed transmission.

www.theicct.org

communications@theicct.org

twitter @theicct

Acknowledgments: The authors would like to thank Anup Bandivadekar and Zifei Yang for their critical and

helpful reviews.

2 ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Our analysis is based on FY 2020–21 sales data and vehicle characteristic information

from Segment Y Automotive Intelligence Pvt. Ltd.

As was the case with the earlier

papers, the fuel economy data was checked against data from the Society of Indian

Automobile Manufacturers (SIAM) and updated where appropriate.

Our data covers

99.9% of new vehicle sales in FY 2020–21.

Background

India is the ﬁfth-largest passenger vehicle market in the world by sales volume, and SIAM

data shows annual sales in FY 2020–21 reached 2.7 million (Figure 1). Compared with FY

2019–20, passenger car sales in FY 2020–21 dropped by 2%.

1.5

2.0

2.5

2.7

2.5

2.6

2.8

3.0

3.3

3.4

2.8

2.7

-30%

-20%

-10%

10%

20%

30%

40%

50%

60%

70%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Annual growth rate

Million units

2007–

2008–

2009–

2010–

2011–

2012–

2013–

2014–

2015–

2016–

2017–

2018–

2019–

2020–

Annual growth rate Number of passenger cars

Figure 1. The trend of passenger car sales in India. Source: SIAM data.

In 2015, the Government of India established corporate average fuel consumption

standards for passenger cars. They take eect in two phases: the ﬁ

rst targets began in

FY 2017–18 and the second are slated to begin in FY 2022–23. The standards are set in

terms of gasoline-equivalent liters per 100 kilometers (L/100 km) and are adjusted based

on vehicle curb weight.

In 2018, the Ministry of Road Transport and Highways (MoRTH)—the agency in charge of

implementing the vehicle fuel consumption standards—finalized the document that

describes how to determine the compliance of manufacturers with the fuel consumption

standards.

In June 2021, the industry average curb weight for FY 2022–23 was revised

from 1,145 kg to 1,081.83 kg. Since 2017, the industry average curb weight has been in

the range of 1,095 kg to 1,065 kg (Figure 2). Therefore, the modiﬁcation of the curb

weight to 1,081.83 kg means the curb weight of passenger cars in FY 2022–23 will be

4 Segment Y Automotive Intelligence focuses on automotive markets in Asia. Annual data was purchased from

Segment Y for FY 2006–07 through 2012–13, 2015–16, and 2017–18 through 2020–21.

5 The fuel economy of vehicles sold in ﬁscal 2020–21 is from SIAM, https://www.siam.in/uploads/ﬁlemanager/2

344WFEDeclaration2019-20.pdf. For models that do not have SIAM fuel economy information, we collected

information from voluntary reporting by manufacturers on manufacturers’ website or advertising materials.

6 Ministry of Road Transport and Highways, “Administrative and Technical Procedure for Measurement and

Monitoring [Average] Fuel Consumption in l/100 km of M1 Category Vehicles with GVW Not Exceeding 3500

kg,” Amendment No. 7 to Doc. No.: MoRTH/CMVR/ TAP-115/116: Issue No.: 4, (2018), https://www.icat.in/pdf/

Amendment_7_TAP_CAFE_23052018.pdf.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

represented more realistically. All analysis in this paper was done with the revised curb

weight of 1,081.83 kg for FY 2022–23.

The fuel consumption for compliance is measured as grams of CO

emissions per

kilometer (g/km) during vehicle type approval. The factors to be used for converting

consumption of dierent fuel types into gasoline-equivalent fuel consumption, and for

converting from gasoline-equivalent fuel consumption to CO

emissions, are deﬁned

in the regulation.

Additionally, in a type-approval test, CO

is one of the emission

parameters in the emissions report for all fuel types.

The CO

lue provided by the manufacturer during type approval is called the

declared value (DV).

The CO

value derived from the type-approval test should not

exceed the DV by more than 4%. The accuracy of the DV is again checked during

conformity of production (COP) tests. The CO

values used in our analysis are the DVs

provided by the manufacturers.

The compliance document includes ﬂexibility mechanisms that are intended to reduce

compliance costs and promote innovative technologies that reduce CO

emissions. The

ﬂexibility mechanisms that would inﬂuence manufacturers’ compliance with standards

include o-cycle credits and super credits for battery electric vehicles (BEVs), plug-in

hybrid electric vehicles (PHEVs), and strong hybrid electric vehicles (HEVs).

O-cycle credits aim to reward innovative technologies that produce real-world CO

savings beyond what is measured over a standardized test cycle during vehicle type

approval. The compliance provisions allow manufacturers to use o-cycle credits for four

technologies: regenerative braking, start-stop systems, tire-pressure monitoring systems

(TPMS), and 6-speed or more transmissions. Note that TPMS is mandatory for safety

under U.S. and EU regulations, but not in India. In India’s standard, the CO

emissions

values are multiplied by 0.98 for each o-cycle technology applied on a vehicle.

Although manufacturers are also allowed to demonstrate the savings of technologies (1

g/km or more) other than the four on the list, the total CO

reduction due to the o-

cycle credits of listed technologies or additional technologies cannot exceed 9 g/km.

Previous compliance reports published by the MoRTH showed that all car manufacturers

met the fuel consumption standards for all years through FY 2019–20, when various

flexibility mechanisms were taken into account.

This paper evaluates compliance for FY

2020–21 by referring to the fuel consumption standards and the rules for evaluating

compliance by manufacturer groups. Fuel consumption standards and compliance are

reported in terms of equivalent CO

emissions.

Historical ﬂeet average CO

emissions

Our analysis shows that the sales-weighted, industry average CO

emissions for

new passenger cars in India in FY 2020–21 was 121.3 g/km, including the ﬂexibility

mechanisms. The ﬂeet average curb weight increased from 1,068 kg to 1,081 kg. The ﬂeet

target was 132.7 g/km, and it was met by a margin of 8.5%. Figure 2 shows the historical

ﬂeet average performance of CO

from FY 2006–07 to FY 2020–21.

7 Fuel types include gasoline, diesel, liquid petroleum gas, compressed natural gas, and electricity. Gasoline

equivalent fuel consumption (liters/100 km)

= 0.04217 (g/liter) × CO

emissions (g/km) CO

emissions (g/km)

= 2371.35/ fuel economy (kmpl).

8 Ministry of Road Transport and Highways, “Administrative and Technical Procedure for Measurement and

Monitoring [Average] Fuel Consumption.”

9 Ministry of Road Transport and Highways, “Annual Fuel Consumption Compliance Report for M1 Category

of Vehicles with GVW not Exceeding 3500 kg,” https://morth.gov.in/sites/default/ﬁles/circulars_document/

Annual%20Fuel%20Consumption%20report%20for%202019-20.pdf.

4 ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

2006–07

2009–10

2010–11

2011–12

2012–13

2015–16

2017–18

2018–19

2019–20

2020–21

110

115

120

125

130

135

140

145

150

155

160

980 1,000 1,020 1,040 1,060 1,080 1,100

1,120

emissions (g/km)

Curb weight (kg)

Figure 2. Trend of historical ﬂeet average CO

performance with ﬂexibility mechanisms and curb weight.

In the 10 years from FY 2009–10 to FY 2019–20, average CO

emissions decreased 1.4%

a year, whereas average curb weight rose 0.5% annually. The three-year period between

FY 2012–13 and FY 2015–16 saw the sharpest decline in CO

emissions, averaging

reductions of 3.4% per year, along with the smallest increase in curb weight of 0.2%

a year. From FY 2015–16 onward, the ﬂeet average curb weight started dropping and

reached 1,068 kg in 2019–20; it then slightly increased by 1.2% to 1,081 kg in FY 2020–21.

This trend is mainly due to the decrease in the market share of diesel vehicles (Figure 3).

In FY 2018–19 and FY 2019–20, the ﬂeet average CO

emissions remained relatively ﬂat,

and they decreased by 0.8% in FY 2020–21.

Market and technology ﬂeet speciﬁcations

Bharat Stage (BS) VI emission standards were implemented on April 1, 2020. This makes

analyzing FY 2020–21 ﬂeet characteristics particularly interesting, as BS VI requires

diesel vehicles to contain advanced emission control technologies that increase the

upfront cost. As a result, the market share of diesel vehicles declined from 30% in FY

2019–20 to 17.8% in FY 2020–21. Currently, only diesel engines 1,500 cc and larger have

a sizeable market share. Most of the small car manufacturers that earlier had close to an

equal mix of diesel and gasoline vehicles stopped selling diesel variants and developed

turbocharged gasoline variants to take their place.

Figure 3 plots the recent trend of market share of annual new passenger vehicle sales by

fuel type, and Figure 4 shows the share of turbocharged gasoline vehicles rose to 9.5%.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

10%

20%

30%

40%

50%

60%

70%

80%

Market share

Gasoline Diesel CNG

Electric

2007–

2008–

2009–

2010–

2011–

2012–

2013–

2014–

2015–

2016–

2017–

2018–

2019–

2020–

Figure 3. Trends of passenger vehicle sales in India by fuel type.

FY 2019–20FY 2020–21

Diesel CNGGasoline

Common

rail, 33.7%

Turbo-

charged

Turbo-

charged

Diesel

Gasoline

Naturally

aspirated

Multi-

injection,

58.3%

Gasoline

Naturally

aspirated

Naturally

aspirated

Multi-

injection,

65.9%

Direct

injection,

4.8%

Turbo-

charged

Turbo-

charged

Common

rail, 18.3%

Direct

injection,

8.6%

CNG

Multi-point

injection,

6.2%

Figure 4. Comparison of gasoline and diesel fuel injection technologies in new vehicle sales in FY

2019–20 and FY 2020–21.

Figure 5 shows the market share of the top 15 passenger car manufactures in India in FY

2020–21. Maruti and Hyundai maintained the top two positions from the prior year with

market shares of 47.2% and 17.2%, respectively. The top ﬁve manufacturers had 84.2% of

the market, and thus they mostly govern industry trends in terms of new technologies

and CO

emissions. Tata, which was fourth the prior year in terms of market share,

improved its position to third place in FY 2020–21. Kia moved up to fourth position

based on its sales of sport utility vehicles (SUVs).

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Maruti

47.2%

Hyundai

17.2%

Tata

8.4%

Kia

5.7%

Mahindra

5.7%

Toyota

3.4%

Renault

3.4%

Ford, 1.8%

MG, 1.4%

Skoda, 1.2%

Nissan, 0.7%

Mercedes, 0.3

FCA, 0.2%

BMW, 0.2%

Other

5.9%

Honda

3.0%

Figure 5. Market share of top manufacturers in FY 2020–21.

Manufacturers also developed turbocharged gasoline engines for the heavier SUVs,

which were previously predominantly diesel. The gasoline variants are signiﬁcantly

better closing the gap with diesel in terms of fuel eciency and engine torque. All the

models in the diesel segment in FY 2020–21 use common rail technology.

Figure 6 plots the historical trend of curb weight and engine displacement of new

vehicles sold by fuel type. The market share of electric vehicles in FY 2015–16 was 0.03%,

and this increased to 0.2% in FY 2020–21. The market share of compressed natural gas

(CNG) vehicles also increased during the same period, from 0.1% in FY 2015–16 to 6.2% in

FY 2020–21. The decrease in the share of diesel vehicles sold impacted the average curb

weight and average engine displacement of all major passenger car manufacturers, as

the diesel ﬂeet has always been heavier and more powerful than the gasoline ﬂeet.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

500

700

900

1100

1300

1500

1700

1900

2100

Displacement (cc)

700

800

900

1000

1100

1200

1300

1400

1500

1600

Curb weight (kg)

Diesel Gasoline Fleet average

2006–

2007–

2008–

2009–

2010–

2011–

2012–

2013–

2014–

2015–

2016–

2017–

2018–

2020–

2019–

2006–

2007–

2008–

2009–

2010–

2011–

2012–

2013–

2014–

2015–

2016–

2017–

2018–

2020–

2019–

Figure 6. Trend of ﬂeet average curb weight and engine displacement by fuel type.

Even though both diesel and gasoline vehicles are increasing in curb weight and engine

displacement, the combined average weight has decreased slightly since FY 2015–16. In

FY 2020–21, the average displacement for diesel vehicles was 1,731 cc, 45.7% higher than

the average gasoline displacement of 1,188 cc, and the average curb weight of diesel

vehicles was 1,526 kg, 35.7% higher than the gasoline average curb weight of 980 kg. As

a result of the declining market share of diesel, in FY 2019–20, the ﬂeet had an average

curb weight of 1,068 kg; in FY 2020–21 it was higher by 1.2% at 1,081 kg, due to an

increase in heavier SUVs and CNG vehicles. Average displacement for FY 2019–20 was

1,295 cc, and it decreased to 1,282 in FY 2020–21 due to reduced sales of diesel cars.

The average ratio of passenger cars to SUVs/vans was roughly 4:1 between FY 2006–07

and FY 2011–12. This ratio shifted suddenly by about 10% toward SUVs/vans in FY

2012–13. Then through FY 2019–20, the market share of SUVs hovered around 30%, and

in FY 2020–21, the market share of SUVs increased to 36%, and the average ratio with

passenger cars was 1:1.8.

8 ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Figure 7 illustrates these trends.

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Market share

Passenger cars

SUVs/vans

2007–

2008–

2009–

2010–

2011–

2012–

2013–

2014–

2015–

2016–

2017–

2018–

2019–

2020–

Figure 7. Trend of market share by vehicle type.

Figure 8 shows the fuel mix for all passenger car manufacturers in India. Skoda, Nissan,

and Renault have 100% gasoline ﬂeets and stopped selling diesel variants. For Force and

Isuzu, their entire ﬂeets are diesels, but their overall market share is much smaller. Maruti

and Hyundai are the only brands that are aggressively promoting CNG cars. Maruti has

largest share of 11.7% with CNG models like the WagonR, Alto, Celerio, S-Presso, Eeco,

and Ertiga. Hyundai’s 4% CNG market share puts it in second, and it sells models like the

Aura, Santro, Xcent, and Grand i10 Nios.

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Maruti

Hyundai

Tata

Kia

Mahindra

Toyota

Renault

Honda

Ford

Skoda

Nissan

Mercedes

FCA

BMW

Jaguar Land

Rover

Volvo

Force

Isuzu

Market share

CNG diesel electric hybrid petrol

Figure 8. Market share of fuel types for manufacturers in FY 2020–21. Note that the hybrids shown

in the chart are full hybrids.

9 ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Under its Mission Green Million strategy, Maruti Suzuki is promoting CNG and hybrid cars

to oset the discontinuation of its diesel segment.

There are several factors that have

led to the growth of CNG vehicle sales, and one is the noticeable growth in CNG reﬁlling

stations across India. Additionally, in FY 2020–21, diesel and gasoline prices increased

continuously, and that shifted customers toward the cheaper CNG fuel alternative.

compliance by manufacturer

Table 1 presents our estimates of the annual corporate average CO

performance and

the average CO

target for all manufacturers. Note that the CO

target varies based on

average curb weight. The table also details the market share of each corporate group.

According to the compliance standard, corporate group is deﬁned as having a minimum

of 51% direct shareholding in each manufacturing company by the group. This may be

considered as one manufacturer for the purpose of complying with fuel consumption

standards. Further, Segment Y data provides information on 6-speed transmissions,

regenerative braking, start-stop, TPMS, electric variants, and hybrid vehicles.

The list of manufacturers is the same in FY 2020–21 as in FY 2019–20. Based on sales

volumes in FY 2020–21, Jaguar Land Rover, Force Motors, Volvo, and Isuzu should all be

categorized as small manufacturers. Small car manufacturers are considered compliant

under the provisions that set the FY 2020–21 target for small volume manufacturers at

actual performance.

Table 1. Market share, curb weight, and CO

performance including ﬂexibility mechanisms for BEVs, PHEVs, and hybrids, for passenger

cars in FY 2020–21.

Corporate

group

FY 2020–21 FY 2022–23

Small

manufacturer

Market

(%)

Curb

weight

(kg)

Target

(g/km)

Performance

w/o

ﬂexibility

mechanism

(g/km)

Performance

with

ﬂexibility

mechanism

(g/km)

Exceedence

(gap)

without

ﬂexibility

mechanisms

(%)

Exceedence

(gap) with

ﬂexibility

mechanisms

(%)

Target for 2022–

23 standard

using industry

average weight

of 1,145 kg

(g/km)

Target for 2022–

23 standard

using industry

average weight

of 1,081.83 kg

(g/km)

Gap without

ﬂexibility

mechanisms

(%)

Gap with

ﬂexibility

mechanisms

(%)

Maruti 47.2% 911 123.1 112.7 111.8 8.4% 9.1% 102.0 105.0 -7.3% -6.5% N

Hyundai 17.2% 1109 134.4 123.1 120.6 8.4% 10.3% 111.4 114.4 -7.6% -5.4% N

Tata 8.4% 1144 136.3 126.3 121.6 7.4% 10.8% 113.1 116.1 -8.8% -4.7% N

Kia 5.7% 1305 145.5 134.5 130.8 7.5% 10.1% 120.7 123.7 -8.8% -5.8% N

Mahindra 5.7% 1647 164.9 158.5 153.5 3.9% 7.0 % 136.9 139.9 -13.3% -9.7% N

Toyota 3.4% 1481 155.5 151.8 148.5 2.4% 4.5% 129.0 132.0 -15.0% -12.5% N

Renault 3.4% 870 120.8 120.8 120.7 0.0% 0.1% 100.1 103.1 -17.2% -17.1% N

Honda 3.0% 1029 129.8 129.3 127.4 0.4% 1.8% 107.6 110.6 -16.9% -15.2% N

Ford 1.8% 1344 147.7 138.4 136.9 6.3% 7.3% 122.5 125.5 -10.3% -9.1% N

MG 1.4% 1718 169.0 156.4 141.4 7.4% 16.3% 140.3 143.3 -9.2% 1.3% N

Skoda 1.2% 1176 138.2 136.4 133.5 1.3% 3.3% 114.6 117.6 -16.0% -13.6% N

Nissan 0.7% 914 123.3 122.5 121.6 0.7% 1.3% 102.2 105.2 -16.5% -15.7% N

Mercedes 0.3% 1929 181.0 172.0 163.1 5.0% 9.9% 150.3 153.3 -12.2% -6.4% N

FCA 0.2% 1544 159.1 161.5 156.9 -1.5% 1.4% 132.0 135.0 -19.7% -16.2% N

BMW 0.2% 1812 174.3 164.6 155.2 5.6% 11.0% 144.7 147.7 -11.4% -5.1% N

Jaguar

Land Rover

0.1% 1852 176.6 180.9 172.2 -2.4% 2.5% 142.9 142.9 -26.6% -20.5% Y

Volvo 0.0% 1878 178.1 158.1 145.6 11.2% 18.2% 120.9 120.9 -30.9% -20.5% Y

Force 0.0% 2011 185.7 213.6 213.6 -15.0% -15.0% 177.3 177.3 -20.5% -20.5% Y

Isuzu 0.0% 2010 185.6 215.3 215.3 -16.0% -16.0% 178.7 178.7 -20.5% -20.5% Y

Total 100.0% 1081 132.7 123.5 121.3 7.0% 8.6% 110.1 113.1 -9.2% -7.3% —

Because the compliance targets are based on curb weight, and Maruti has a lighter-than-

average ﬂeet, it has to meet a more stringent target than the industry average target.

In the table, we use the manufacturer sales-weighted average weight of FY 2020–21 to

calculate the FY 2022–23 targets for each manufacturer. The FY 2022–23 CO

targets

are based on recently revised industry-average curb weight of 1,081.83 kg. Assuming

that the ﬂeet average curb weight remains the same as FY 2020–21, the industry ﬂeet

10 Maruti Suzuki, “About Mission Green Million,” accessed July 2021, https://www.marutisuzuki.com/auto-

expo-2020/mission-green-million.html.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

average CO

target in FY 2022–23 will be 113.1 g/km. Therefore, the new passenger car

ﬂeet will need to reduce CO

emissions/fuel consumption by only 6.8% in the next two

years, or about 3.5% annually.

Table 1 also includes the margins with respect to both the target for FY 2020–21 and

the upcoming FY 2022–23 target. Among 15 manufacturers, MG and Volvo are already

meeting the compliance targets for FY 2022–23. Meanwhile, FCA, Jaguar Land Rover,

Force, Renault, and Isuzu are not complying with the FY 2020–21 targets before the

application of ﬂexibility mechanisms, and Force and Isuzu are also not complying with

the targets after application of ﬂexibility mechanisms. Recall, though, that Isuzu and

Force do not need to meet compliance targets, as they qualify as small manufacturers

with total sales of fewer than 5,000 units per year. Force and Isuzu are also identiﬁed

as small car manufacturers in last year’s MoRTH’s compliance report. The FY 2022–23

targets for these small manufacturers will be 17% below their FY 2017–18 performance.

Renault, Skoda, Toyota, FCA, and Nissan are meeting their targets with less than a

5% margin when ﬂexibility mechanisms are taken into account. The larger the margin

with the current target, the more these manufacturers will have to improve to meet FY

2022–23 standards; many will have to reduce fuel consumption by another 14%–20%

including ﬂexibility mechanisms.

India’s FY 2022–23 standards are much less stringent than the EU 2021 standards. Figure

9 compares the EU and India standards and presents a pictorial representation of the

annual corporate performance of all Indian manufacturers as a function of average curb

weight without ﬂexibility mechanisms or super credits.

Maruti

Hyundai

Tata

Kia

Mahindra

Toyota

Renault

Honda

Ford

Skoda

Nissan

Mercedes

FCA

BMW

Jaguar Land Rover

Volvo

Force

Isuzu

110

130

150

170

190

210

230

250

500 700 900 1,100 1,300 1,500 1,700 1,9002,100 2,300

2,500

(g/km)

Weight (kg)

Without ﬂexibility mechanism

FY 2020–21 standard

FY 2022–23 standard

EU 2021 standard

Figure 9. CO

performance of corporate group in FY 2020–21 without ﬂexibility mechanisms.

Figure 10 gives a similar pictorial representation of corporate performance, this time

including ﬂexibility mechanisms. This chart shows that manufacturers like Jaguar Land

Rover and FCA have clearly beneﬁted from these ﬂexibility mechanisms.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Maruti

Hyundai

Tata

Kia

Mahindra

Toyota

Renault

Honda

Ford

Skoda

Nissan

Mercedes

FCA

BMW

Jaguar Land Rover

Volvo

Force

Isuzu

110

130

150

170

190

210

230

250

500 700 900 1,100 1,300 1,500 1,700 1,900 2,1002,300

2,500

Weight (kg)

(g/km)

FY 2020–21 standard

FY 2022–23 standard

EU 2021 standard

With ﬂexibility mechanism

Figure 10. CO

performance of corporate groups in FY2020–21 with ﬂexibility mechanisms.

Figure 11 compares CO

values of FY 2018–19, FY 2019–20, and FY 2020–21 for the top

12 manufacturers. Except for Renault and Nissan, all manufacturers improved their

performance with respect to the previous year. MG is already meeting the FY 2022–23

standard, but Mahindra, Renault, Nissan, and Skoda have a wider gap to bridge in the

coming years.

Maruti

Hyundai

Mahindra

Tata

Honda

Toyota

Renault

Ford

Skoda

Nissan

Maruti

Hyundai

Mahindra

Tata

Honda

Toyota

Renault

Ford

Skoda

Nissan

Kia

Maruti

Hyundai

Mahindra

Tata

Honda

Toyota

Renault

Ford

Skoda

Nissan

Kia

100

110

120

130

140

150

160

170

750 900 1,050 1,200 1,350 1,500 1,650

(g/km)

Weight (kg)

FY2018-2019 FY2019-2020 FY2020-2021

FY 2020-202

1 standard

FY 2022-2023 standard

Figure 11. Fleet average CO

emissions of the top 10 manufacturers FY 2018–19, 2019–20, and 2020–21.

The impact of ﬂexibility mechanisms

The maximum beneﬁt of ﬂexibility mechanisms—the o-cycle credits for technologies

such as start-stop, TPMS, regenerative braking, and 6-speed transmission—is capped

at 9 gCO

/km per vehicle. The standards also allow super credits from sales of electric

vehicles and hybrid vehicles. For the purpose of calculating the corporate average CO

performance, a manufacturer uses a volume derogation factor of 3 for BEVs, 2.5 for

PHEVs, and 2 for strong HEVs. This means that a BEV counts as 3 vehicles, a PHEV as 2.5

vehicles, and a strong HEV as 2 vehicles when calculating ﬂeet average CO

emissions.

The fuel consumption of the electricity driving portion for BEVs and PHEVs is converted

from electricity consumption based on an equation provided in the regulations.

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Table 2 summarizes the impact of ﬂexibility mechanisms in terms of CO

g/km and

the average CO

emissions level with and without the ﬂexibility mechanisms. Beneﬁts

achieved through the sale of electric and hybrid vehicles, and beneﬁts achieved through

the 6-speed, TPMS, regenerative braking, and start-stop technologies are listed under

the overall impact of ﬂexibility mechanisms. While BMW, Mercedes, and Volvo are fully

using their ﬂexibility mechanisms to 9 gCO

, Renault, Nissan, and Maruti are using less

than 1 gCO

of ﬂexibility mechanisms.

Table 2. Eect of ﬂexibility mechanisms on CO

emissions by corporate group in FY 2020–21.

Corporate group

Target

(g/km)

Avg CO

w/o

ﬂexibility

mechanism

(g/km)

Impact of ﬂexibility mechanisms (g/km) With

ﬂexibility

mechanisms

(g/km)

Small

manufacturerSupercredits

O-cycle

credits Total

Maruti 123.1 112.7 0.0 -0.9 -0.9 111.8 N

Hyundai 134.4 123.1 -0.1 -2.4 -2.5 120.6 N

Tata 136.3 126.3 -3.3 -1.5 -4.7 121.6 N

Kia 145.5 134.5 0.0 -3.7 -3.7 130.8 N

Mahindra 164.9 158.5 0.0 -5.0 -5.0 153.5 N

Toyota 155.5 151.8 -0.2 -3.0 -3.2 148.5 N

Renault 120.8 120.8 0.0 -0.1 -0.1 120.7 N

Honda 129.8 129.3 0.0 -1.9 -1.9 127.4 N

Ford 147.7 138.4 0.0 -1.5 -1.5 136.9 N

MG 169.0 156.4 -9.9 -5.1 -15.0 141.4 N

Skoda 138.2 136.4 0.0 -2.9 -2.9 133.5 N

Nissan 123.3 122.5 0.0 -0.8 -0.8 121.6 N

Mercedes 181.0 172.0 0.0 -8.9 -8.9 163.1 N

FCA 159.1 161.5 0.0 -4.6 -4.6 156.9 N

BMW 174.3 164.6 -0.4 -9.0 -9.4 155.2 N

Jaguar Land Rover 176.6 180.9 -0.3 -8.5 -8.7 172.2 Y

Volvo 178.1 158.1 -3.7 -8.8 -12.5 145.6 Y

Force 185.7 213.6 0.0 0.0 0.0 213.6 Y

Isuzu 185.6 215.3 0.0 0.0 0.0 215.3 Y

Total 132.7 123.5 -0.4 -1.8 -2.2 121.3 —

Because most of the mass-market manufacturers are not using the ﬂexibility

mechanisms in all of their vehicles, there remains a lot of potential to reduce the gap

with the FY 2022–23 ﬂeet average targets via more widespread use of them. Note, too,

that the allowed o-cycle credits are cheaper in terms of cost when compared with

expensive technologies that generate super credits, such as electric vehicles and strong

hybrids. Manufacturers already equipped some percentage of their newly launched

vehicles in FY 2020–21 with the technology and are likely to implement them in most of

their models in the future. This means that manufacturers are likely to prefer to use the

maximum o-cycle credits beneﬁt of 9 gCO

/km before shifting to other technologies.

Table 3 lists the market share of vehicles equipped with ﬂexibility mechanisms by

corporate group. As you can see, corporate groups that sell luxury or high-end vehicles

are 100% equipped with most of the ﬂexibility mechanisms. The share of ﬂexibility

mechanisms also increased from FY 2019–20 to FY 2020–21 in such vehicles, including

those from Mercedes-Benz, BMW, and Jaguar. The trend for 6-speed transmission and

start-stop is increasing in mass-market passenger cars, too.

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Table 3. Comparison of vehicles equipped with ﬂexibility mechanisms in FY 2019–20 and 2020–21.

Manufacturer

6-speed transmission (%) Regenerative braking (%) TPMS (%) Start stop (%)

FY 2019 –20 FY 2020–21 FY 2019–20 FY 2020–21 FY 2019–20 FY 2020–21 FY 2019–20 FY 2020–21

Mercedes 100.0 100.0 27.9 78.3 98.9 100.0 98.9 100.0

BMW 100.0 100.0 97.7 100.0 97.7 97.4 97.6 100.0

Jaguar 100.0 100.0 26.8 23.0 74.6 100.0 74.6 73.3

Volvo 100.0 100.0 52.3 100.0 74.0 100.0 66.7 100.0

MG 100.0 100.0 16.3 10.1 56.4 54.7 12.7 12.9

Kia 100.0 88.3 — — 55.0 47.4 — —

FCA 98.7 100.0 — 0.4 0.1 1.8 0.3 42.8

Toyota 49.1 29.9 8.7 14.3 2.0 1.0 46.0 54.4

Tata 46.3 39.1 2.8 1.7 0.4 5.3 13.4 10.3

Mahindra 45.8 60.5 8.0 0.5 12.9 18.6 46.5 84.4

Hyundai 45.2 53.8 0.2 — 1.5 41.2 — —

Honda 37.4 48.7 — — — 24.7 0.5 —

Skoda 28.5 75.8 2.6 12.7 5.6 14.9 2.6 13.2

Nissan 16.4 13.9 — — — 14.0 — 3.0

Ford 14.7 15.5 — — 10.9 15.2 18.9 12.3

Maruti 5.5 4.4 9.3 10.7 — — 9.3 21.9

Renault 4.9 2.2 — — — — — 1.3

Force — — — — — — — —

Isuzu — — — — — — — —

Figure 12 shows the increase in usage of ﬂexibility mechanisms for the entire ﬂeet in

FY 2020–21 when compared with FY 2019–20. TPMS showed the most growth across

all manufacturers. Regenerative braking showed the least growth, likely because of its

higher cost compared with the others.

10%

15%

20%

25%

30%

35%

Regenerative

braking

TPMS start stop 6 speed

transmission

Market share (%)

FY2019-20 FY 2020-21

Figure 12. Comparison of ﬂexibility mechanisms for FY 2019–20 and FY 2020–21.

Table 4 gives the market share of CNG, electric, PHEV, strong hybrid, 48V, and advanced

micro-hybrid sales volumes for manufacturers in comparison with their total sales

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volume. Higher sales of advanced micro-hybrids and CNG vehicles shows increased

market acceptance of low fuel consumption vehicles. India’s EV market is still at nascent

stage with less than 1% market share of electrics and PHEVs. There are many challenges

currently. For one, as compared with conventional (ICE) vehicles, electrics in the same

segment are more expensive. This is primarily because of the higher cost of the battery

and other technologies used in the EVs, as these constitute a substantial portion of

the overall vehicle cost. These extra costs also do not leave much avenue for including

features usually available in vehicles of a similar price category.

However, the central government is prioritizing the shift toward EVs with schemes such

as FAME II and Production Linked Incentive Scheme (PLI) for Advanced Cell Chemistry

(ACC) battery manufacturing. This will support the EV supply chain, and with batteries

made locally, the cost of electric vehicles is expected to drop. Manufacturers such as

Tata are planning to launch more EV models, and that will help provide customers with a

wide range of products.

Table 4. Share of CNG, electric, strong hybrids, advanced micro-hybrid, 48V hybrid, and PHEV in

total sales volume in FY 2020–21.

Manufacturer

CNG

(%)

Advanced

micro- hybrid

(%)

48V hybrid

(%)

Strong

hybrid

(%)

PHEV

(%)

Electric

(%)

Maruti 11.68 10.10 — — — —

Hyundai 3.96 — — — — 0.04

Tata — — — — — 1.67

Mahindra — — — — — 0.01

Toyota — — — 0.61 — —

MG — — 6.08 — — 4.21

Mercedes — — 3.87 — — —

BMW — — — — 0.40 —

Jaguar Land Rover — — — — — 0.09

Volvo — — — — 3.75 —

Table 5 gives the CO

reduction potential for each of the manufacturers when all four

ﬂexibility mechanism technologies are used in all the vehicles sold. Among the major

manufacturers, Maruti can easily meet its FY 2022–23 target without using electric or

hybrid vehicles. MG and Volvo are already meeting their FY 2022–23 targets with a small

share of electric and hybrid vehicles. Tata and Hyundai will have to fully use the ﬂexibility

mechanisms and continue with the existing share of EVs sold in FY 2020–21.

The top three manufacturers can comfortably meet the FY 2022–23 CO

standard by

simply using ﬂexibility mechanisms. This shows that the FY 2022–23 targets are not

stringent enough to drive the adoption of new technology, and there is room for the

standards to be more stringent.

Table 5 also shows scenarios of CO

reduction with more penetration of electric and

hybrid vehicles. The analysis uses a super credits factor for both electric and strong

hybrid vehicles. Kia will need at least 1% and Mahindra at least 2% electric vehicle

penetration to meet the target. Toyota would need either 3% electric or 10% of strong

hybrids along with full use of all the ﬂexibility mechanisms. Renault, Honda, and FCA will

have to deploy more than 3% electric or 10% strong hybrids to meet their target. Note

that we considered a 25% fuel consumption beneﬁt for strong hybrids as compared with

conventional vehicles.

11 “Tata Motors to launch 10 new EVs by 2025,” Business Today, Updated June 29, 2021, https://www.

businesstoday.in/auto/story/tata-motors-to-launch-10-new-evs-by-2025-299938-2021-06-29.

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Table 5. CO

reduction potential with maximum use of ﬂexibility mechanisms in FY 2020–21.

Manufacturer

Performance

with ﬂexibility

mechanisms in

FY 2020–21

(g/km)

Performance

after using

all ﬂexibility

mechanisms in

all sales volume

(g/km)

FY 2022–23

target

(g/km)

Gap with FY

2022–23 target

after using

all ﬂexibility

mechanisms in

all sales volume

(g/km)

Scenario 1:

reduction

with 1% EV

(g/km)

Scenario 2:

reduction

with 2% EV

(g/km)

Scenario 3:

reduction

with 3% EV

(g/km)

Scenario 4:

reduction

with 1%

HEV

(g/km)

Scenario 5:

reduction

with 2%

HEV

(g/km)

Scenario 6:

reduction

with 10%

HEV

(g/km)

Maruti 111.8 103.7 105.0 -1.3 2.5 5.0 7.4 0.6 1.1 5.6

Hyundai 120.6 113.9 114.4 -0.5 2.7 5.4 8.1 0.6 1.2 6.0

Tata 121.6 113.9 116.1 -2.1 2.7 5.4 8.1 0.6 1.2 6.1

Kia 130.8 125.4 123.7 1.7 3.0 5.9 8.9 0.7 1.3 6.5

Mahindra 153.5 149.5 139.9 9.6 3.5 7.0 10.5 0.8 1.5 7.7

Toyota 148.5 142.5 132.0 10.5 3.3 6.7 10.0 0.7 1.5 7.4

Renault 120.7 111.8 103.1 8.7 2.7 5.3 8.0 0.6 1.2 6.0

Honda 127.4 120.3 110.6 9.7 2.8 5.7 8.5 0.6 1.3 6.4

Ford 136.9 129.1 125.5 3.6 3.0 6.1 9.1 0.7 1.4 6.8

MG 141.4 137.4 143.3 -5.9 3.2 6.4 9.7 0.7 1.4 7.1

Skoda 133.5 1 27.7 117.6 10.1 3.0 6.0 9.0 0.7 1.3 6.7

Nissan 121.6 113.4 105.2 8.2 2.7 5.4 8.1 0.6 1.2 6.1

Mercedes 163.1 163.1 153.3 9.8 3.9 7.7 11.6 0.8 1.6 8.1

FCA 156.9 152.5 135.0 17.4 3.6 7.1 10.7 0.8 1.6 7.8

BMW 155.2 155.2 147.7 7.5 3.7 7.4 11.1 0.8 1.6 7.8

Jaguar Land

Rover

172.2 172.2 142.9 29.3 4.0 8.0 12.1 0.9 1.7 8.6

Volvo 145.6 145.6 120.9 24.8 3.5 6.9 10.4 0.7 1.5 7.3

Force 213.6 204.6 177.3 27.3 4.9 9.7 14.6 1.1 2.1 10.7

Isuzu 215.3 206.3 178.7 27.6 4.9 9.8 14.7 1.1 2.2 10.8

Fleet average 121.3 112.3 113.1 -0.8 2.7 5.4 8.1 0.6 1.2 6.1

Technology baseline gap between India and Europe for

2020 new vehicles

Historically, Indian and European passenger cars had similar ﬂeet average CO

emissions

(Figure 13). European vehicles were generally heavier and more powerful but had better

technologies that allowed the CO

emissions to be comparable with Indian vehicles.

But now Europe has adopted more stringent standards for 2025 and 2030 lower by

15% and 55%, respectively. This has further increased the rapid diusion of electric

vehicles, alternative fuels, and advanced gasoline engine technology. Similar to India, the

demand for diesel passenger cars is waning as manufacturers are shifting to gasoline

engines to avoid the high cost of diesel emission control technology. Also, new gasoline

technologies such as direct injection, turbocharging and downsizing, engine friction

reduction, cooled exhaust gas recirculation (EGR), and variable valve timing (VVT)

bridged the eciency gap with diesel.

Development of technologies such as multi-stage variable geometry turbochargers,

variable compression ratio, and Atkinson/Miller-cycle engines is further improving gasoline

eciency. Studies in Europe show that gasoline models like the VW Golf TSI are as

ecient as diesel cars and deliver comparable performance at a much lower retail price.

On the vehicle side, mass reduction, low rolling-resistance tires, and aerodynamic drag

reduction are some of the technologies that have been adopted in Europe to reduce

emissions.

12 Peter Mock and Uwe Tietge, Diesel car sales decline will have negligible impact on attainment of European

emission standards, (ICCT: Washington, DC, 2018), https://theicct.org/sites/default/ﬁles/publications/

ICCT_diesels-EU_20180315.pdf

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138.3

135.6

136.3

123.0

120.6

121.9

122.4

121.3

147.5

140.9

136.6

131.2

125.4

120.0

118.2

120.0

122.0

97.0

113.1

100

125

150

175

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

2030

(g/km)

India Europe

Maruti Suzuki Dzire

2010

132 g/km

2020

98 g/km

Toyota Yaris

2010

164 g/km

2020

84 g/km

(Full hybrid)

-25%

-49%

Figure 13. Comparison of ﬂeet average CO

performance for the European Union (brown line) and

India (blue line), with future ﬂeet average targets (circles). Also, the best-in-class vehicles shown

represent the level of CO

reduction achieved in a decade. CO

values from other vehicles in the

ﬂeet may vary. Source: The EU pocketbook was used for European ﬂeet average CO

data.

HEV technology combines the ICE and an electric motor drivetrain. Most of the fuel

energy lost during vehicle braking on a conventional vehicle is captured by the electric

motor and stored in a lithium-ion battery. The recaptured energy, commonly called

regenerative braking energy, is used to power the electrical system, shut o the engine

during low-load operation, and assist the engine while accelerating. This improves the

overall eciency of the ICE, especially during low-speed operation.

For example, Toyota developed a sophisticated input power-split system for its hybrid

vehicles. As shown in the example in Figure 13, the Yaris improved its CO

emissions by

49% from 2010 to 2020. However, the higher voltage electrical system, electric motor,

and lithium-ion battery add cost. The new-generation 1.5-liter dedicated hybrid engine

has been adopted by Toyota for the ﬁrst time, and it achieves greater fuel eciency by

enhancing the eciency of the entire system.

India’s passenger car ﬂeet is lighter than Europe’s. This is largely driven by the

lightweight vehicles sold by Maruti Suzuki. Other manufacturers, like Renault, Honda, and

Nissan, have a relatively small market share, but their lighter models still contribute to

the overall industry average curb weight.

Apart from lighter vehicle architectures, manufacturers like Hyundai and Maruti have

implemented new engine technologies to reduce CO

emissions. Hyundai Motor India

implemented new technologies in power trains like e-VGT, intelligent manual transmission,

CVT, DCT, and turbocharger to reduce fuel consumption. Some of the engine-level

technologies used by Maruti Suzuki are an all-aluminium engine, rocker-less camshafts,

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and a plastic intake manifold that gives better thermal management. Low-tension rings

and low-friction lubricating oils reduce engine friction. Dual VVT, dual Injectors, higher

compression ratio, and EGR cooling further helps in reducing fuel consumption.

As shown in Figure 13, the Maruti Suzuki Dzire gasoline variant reduced CO

emissions

by 25%, from 132 g/CO

in 2010 to 98 g/CO

in 2020. This was done simply by using

incremental and cost-eective technologies. Dzire reduced its weight from 1,035 kg in

2010 to 890 kg in 2020 and implemented incremental technologies such as low-viscosity

oils, aerodynamic improvement, and low-resistance tires.

The 14% weight reduction in

10 years contributed to an approximately 9%

reduction in CO

emissions. Currently, Dzire

is using an advanced Dualjet engine K12N with dual VVT technology and ﬁrst-in-segment

idle start-stop technology. Dzire does not have hybrid technology, yet, but its CO

comparable to most of the mild hybrids available in Europe. The inclusion of incremental

technologies is therefore an eective measure to reduce a vehicle’s CO

emissions.

Table 6 shows the comparison of ﬂeet average CO

and penetration of hybrid

and electric vehicle technologies from 2017 onward. In 2020, Europe witnessed a

phenomenal increase in sales of PHEV and BEV, from 3% in 2019 to 10.6% in 2020, and

high-voltage full hybrids and 48V mild hybrids, from 5.4% of new sales in 2019 to 12.4%

in 2020.

These market share increases were primarily to meet the stricter target of 95

g/km (in New European Driving Cycle terms). The sales of these vehicles are likely to

increase to meet the even stricter norms of 2025 and 2030.

Table 6. Comparison of curb weight, CO

emissions, and percentage of hybrids and PHEVs and

BEVs in Europe and India.

Europe India

Year

Curb weight

(kg)

(g/km)

Hybrid

(%)

PHEV+BEV

(%) Year

Curb weight

(kg)

(g/km)

Hybrid

(%)

PHEV+BEV

(%)

2017 1395 118 2.7 1.4 2017-18 1064 120.6 0.0 0.01

2018 1397 120 3.7 2.0 2018-19 1078 121.9 0.01 0.06

2019 1415 122 5.4 3.0 2019-20 1068 122.4 0.03 0.1

2020

NA 97 12.4 10.6 2020-21

1081 121.3 0.13 0.2

New passenger car registrations are for calendar year January 1–December 31.

New passenger car registrations are for ﬁscal year April 1–March 31.

Data source for new passenger car registrations in Europe is EU pocketbook, and data for India are analyzed through passenger car sales data from Segment Y.

Both premium car manufacturers like Jaguar Land Rover and Audi and mainstream

manufacturers such as Lancia, Subaru, Mazda, and Suzuki have already equipped more

than 30% of their ﬂeet with mild hybrids in 2020.

As a result, the mild hybrid market

share in Europe jumped from 2.1% in 2019 to 8.2% in 2020. FCA also announced that 40%

of its ﬂeet would have mild hybrids by 2022, from zero in 2019. This shows acceptance

of mild hybrids as one of the most viable and cost-eective solutions for meeting CO

targets in Europe.

Because India has less stringent CO

requirements and a more cost-sensitive market

compared with Europe, Indian manufacturers have historically relied on technologies

with low cost-to-beneﬁt ratios. Now, though, concerns about energy security and

high fuel prices are leading to the development of alternative fuel and low-cost hybrid

13 Maruti Suzuki, “Performance and Fuel Eciency,” Technology, accessed July 2021, https://www.marutisuzuki.

com/corporate/technology/engine.

14 Ashok Deo, “Every Manufacturer’s ‘Dzire’ for Meeting PV Fuel Consumption Standards in India,” International

Council on Clean Transportation, November 20, 2020, https://theicct.org/blog/sta/dzire-pv-fuel-

consumption-standards-india-nov2020.

15 John German, Jan Dorno, Ashok Deo, Technology Brief: Mild-hybrid vehicles – a technology trend for

reducing CO

emissions, (ICCT: Washington, DC, forthcoming).

16 Ibid.

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vehicles in India. Manufacturers such as Maruti Suzuki and Hyundai have increased their

portfolio of CNG powered vehicles to 11.7% and 4.0%, respectively, in FY 2020–21.

Maruti Suzuki has also developed an advanced micro-hybrid system as a cost-eective

technology for vehicles like the Baleno, Brezza, S-Cross, Ciaz, and XL6. This technology

uses a conventional, lead-acid battery for cold cranking the engine and a small lithium-

ion battery to absorb recuperation energy during braking. The absorbed energy is later

provided into the electrical system or used during torque assist, and this results in larger

beneﬁts than from a micro-hybrid. Introduction of 48V mild hybrid systems will play

a crucial role for cost-sensitive markets like India, as it oers the potential of providing

most of the beneﬁts of strong hybrids at a fraction of the cost.

Figure 14 summarizes and compares the market share of BEVs, PHEVs, full hybrids, and

mild hybrids in Europe and India for 2020.

Europe India

ICE

99.8%

Electric

0.2%

PHEV

0.003%

Other

0.2%

ICE

89.5%

BEV

5.4%

PHEV

5.1%

FCEV

0.008%

Other

10.5%

Figure 14. Comparison between the market share of new technologies in Europe and India.

Source: Dataforce.

Conventional technology comparison between Europe

and India

While data regarding the market share of hybrids and plug-in vehicles are available

in Europe and India, as illustrated in Figure 15, comparable market share data are not

available for the technologies used to improve eciency of conventional power trains.

As a substitute, this section compares the top-selling car in Europe, the VW Golf, and

the top seller in India, the Maruti Suzuki Dzire. Both are mid-segment cars in their

regions. The Dzire is smaller than the Golf and considerably lighter, as it is designed to

take advantage of a lower tax structure in India for vehicles less than 4 meters long. In

Europe, there are no such tax-based incentives, and the mid-segment vehicles are longer

than 4 meters.

The technology on the Toyota Yaris hybrid in Europe is also analyzed, as 49% of Yaris

sales in Europe are the hybrid version, and there is no comparable vehicle sold in India.

The comparisons demonstrate that there is considerable technology already widely

available in Europe that could be easily adapted to vehicles in India.

VW Golf

The VW Golf in Europe includes derivatives: the GTI (gasoline), GTD (diesel), and

GTE (plug-in hybrid). With a rising market share of gasoline engines and increasingly

stringent CO

standards, VW has been consistently improving the fuel eciency of

its gasoline variants. It uses engine-level technologies such as optimized combustion

process and vehicle-level technologies such as lightweight materials, low-resistance tires,

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and aerodynamic improvements.

These incremental technologies reduced the gasoline

fuel consumption to a level comparable with diesel engines at a signiﬁcantly cheaper

cost than for a diesel.

Volkswagen developed the new 1.5 TSI ACT BlueMotion engine, with an output of 96

kW / 130 PS, and it is currently powering more than 45 Volkswagen, Audi, SEAT, and

ŠKODA models, including mild, full, and plug-in hybrid drive systems. The combined

fuel consumption of the Golf 1.5 L TSI ACT BlueMotion on the NEDC cycle is 110 gCO2/

km.

Along with commonly used turbocharging and gasoline direct injection, the engine

also uses technologies such as the Miller cycle, variable geometry turbocharger, cylinder

deactivation, and advanced start-stop technology.

The cylinder deactivation system is called Active Cylinder Management (ACT), which

deactivates the two inner cylinders at low power demands. The cylinder deactivation

functionality is within an engine speed range of 1,400 to 4,000 rpm and at vehicle

speeds of up to 130 km/h. To further reduce fuel consumption, the engine decouples

from the dual clutch gearbox during coasting conditions and is switched o. The 12V,

compact, lithium-ion battery system that is part of the advanced start-stop system

powers all of the safety systems in the car when the engine is inactive.

The Miller cycle enables higher compression and when added to turbocharging, it leads

to eciency improvement of approximately 10%.

Increased compression ratio of 12.5:1

and variable geometry turbochargers (VGT) provide an increase in eciency and torque

across all engine speeds, particularly at low engine RPMs. The 1.0 L TSI version of the

engine includes additional technologies to reduce fuel consumption, such as an electric

wastegate actuator, an intake manifold with integrated intercooler, and an exhaust

manifold integrated into the cylinder head.

Maruti Suzuki Dzire

Maruti Suzuki’s K-Series gasoline engines are known for their low fuel consumption in

India. The BS VI compliant 1.2L K12N Dualjet gasoline engine in the Dzire has a peak

power of 66 kW and maximum torque of 113 Nm, and is measured at 98.3 gCO2/km

on the standardized test cycle. Although this is virtually the same as the Golf 1.0L, the

Dzire is 325 kg or 27% lighter, indicating that Golf engines have much higher levels of

technology and eciency. The Dzire’s fuel eciency above other vehicles in India is

achieved from technologies such as higher compression ratio (12.0:1), Dualjet engine,

and dual VVT technology that improve the thermal eciency and produce better

low-end torque, in addition to reducing fuel consumption. However, it is clear from the

comparison in Table 7 that the Golf includes many technologies not implemented in

the Dzire.

17 VW groups strategy for future programs, accessed in August 2021: https://www.volkswagen-newsroom.com/

en/press-releases/fuel-ecient-micro-hybrid-for-the-golf-new-130-ps-petrol-engine-is-as-ecient-as-a-

diesel-1997

18 “Fuel-Ecient Micro-Hybrid for the Golf New 130 PS Petrol Engine is as Ecient as a Diesel,” Volkswagen,

March 19, 2018, https://www.volkswagen-newsroom.com/en/press-releases/fuel-ecient-micro-hybrid-for-the-

golf-new-130-ps-petrol-engine-is-as-ecient-as-a-diesel-1997.

19 Ibid.

20 “International Engine of the Year 2018: The Innovative 1.0 TSI in the New Ip! GTI Wins the Award in Its

Category,” Volkswagen, June 05, 2018, https://www.volkswagen-newsroom.com/en/press-releases/224.

ICCT WORKING PAPER 2021-42 | FUEL CONSUMPTION FROM NEW PASSENGER CARS IN INDIA: FISCAL YEAR 2020–21

Table 7. Comparison between engine speciﬁcations of VW Golf and Maruti Suzuki’s Dzire. Source:

VW and Maruti Suzuki.

Parameters Golf Dzire

Fuel type Gasoline Gasoline Gasoline

Footprint (m

) 4.9 4.9 3.7

Curb weight (kg) 1300 1205 880

Engine displacement (cc) 1498 999 1197

Number of cylinders 4 3 4

Power (kW) 96 85 66

Torque (Nm) 200 200 113

Power to weight ratio (kW/kg) 0.073 0.071 0.075

Gearbox AMT Manual AMT

Max speed (km/h) 210 200 170

(g/km) 110 99 98.3

Non-Engine Technologies

Idle start-stop Yes — Yes

Coasting start-stop Yes — —

Micro-hybrid (advanced start-stop) Yes — —

Engine technologies

Compression ratio 12.5:1 12.5:1 12.0:1

Oset crankshaft — — Ye s

Dual VVT Yes Yes Yes

GDI Yes Yes

Cooled EGR Yes Yes Yes

Turbocharged Yes Yes —

Variable geometry turbocharger Yes — —

Miller cycle Yes — —

Electric wastegate actuator — Yes —

Active cylinder management Yes — —

Intercooler integrated with intake — Yes —

Toyota Yaris hybrid

Toyota has been constantly improving its hybrid technology for more than 20 years.

It began with the Toyota Prius in 1997, and the latest fourth-generation Toyota Yaris

hybrid was launched in 2020. The 1.5 L Hybrid Dynamic Force engine in the Yaris is a

three-cylinder Atkinson cycle gasoline engine with VVT and reduced internal friction.

It also has 15% more power output and higher low end torque. The 40% brake thermal

eciency is similar to typical diesel engines.

The hybrid transaxle is redesigned with a

dual axis structure, resulting in a low-loss geartrain with 9% smaller overall dimensions.

The new lithium-ion hybrid batteries are 27% lighter than the earlier nickel-metal

hydride batteries, and they provide an increase in output that enables quicker vehicle

acceleration and improved eciency.

As a result, the Yaris hybrid achieves 84 gCO

/km on the ocial test cycles. Note that

this is not a niche vehicle. More than 200,000 Yaris vehicles were sold in recent years in

Europe, ranking 13th in total sales by nameplate, and 49% of them sold in 2019 have the

21 “New Toyota Yaris—Designed for Urban Life,” Toyota Europe, October 16, 2019, https://newsroom.toyota.eu/

new-toyota-yaris--designed-for-urban-life/.

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hybrid system. Even though there are no comparable vehicles sold in India, this is already

mainstream technology in Europe.

Summary

As India moves toward more stringent FY 2022–23 fuel

consumption standards for

new passenger vehicles, our analysis of Segment Y data shows the ﬂeet average CO

emissions for FY 2020–21 was 121.3 g/km. Assuming similar industry average weight

going forward, the compliance target for FY 2022–23 will be 113.1 g/km. This means that

to bridge the gap of 6.8% from 121.3 to 113.1 g/km in 2 years, the industry needs to reduce

fuel consumption by approximately 3.5% each year. However, the actual, real-world

decrease will almost certainly be lower, as manufacturers are likely to expand their use of

super credits and ﬂexibility mechanisms.

Based on the signiﬁcant progress that manufacturers have already made toward

compliance with FY 2022–23 standards and the relative leniency of the standards

compared with those in Europe, MoRTH should start to develop signiﬁcantly more

stringent post-FY 2022–23 CO

emission standards.

Table 6, above, compared the CO

performance in Europe and India from 2017 to 2020.

performance from 2017 to 2019 is similar in both regions, even though average

vehicle weight in India is far lower; this means that India already trailed Europe in

eciency technology adoption. In addition, Europe adopted stricter norms beginning in

2020 and this has been the major driver behind the dramatic reduction in CO

emissions

in 2020 and further increases in eciency technology in Europe, including increases in

sales of electric vehicles and hybrids.

As illustrated by the comparison of the Golf with the Dzire and the technology on the

Yaris hybrid, improved technologies are widely available in other regions and could

be added to vehicles in India with minimal new investment. If India wants to pursue

electriﬁcation in passenger cars, then it should update its fuel consumption standards

with a focus on setting 2025 and 2030 standards on par with EU targets.

Corporate groups that sell luxury or high-end vehicles, including BMW, Volvo, Mercedes,

and Jaguar, currently beneﬁt more from ﬂexibility mechanisms than other groups. Some

mass market manufacturers like MG have already met their FY 2022–23 CO

targets

owing to higher sales of electric vehicles and making use of the ﬂexibility mechanisms.

Because 29.1% of the FY 2020–21 passenger cars sold in India were equipped with

6-speed or more transmissions, regulators should consider not granting CO

credits for

this technology any longer, as the provision is intended to promote innovation and new

technology adoption.

Moreover, the impact of super credits is minimal for the FY 2020–21 ﬂeet, but its

impact could grow rapidly as the market share of BEVs, PHEVs, and strong hybrids

goes up. Based on the analysis of Maruti, Tata, MG, and Hyundai, sales of advanced

micro-hybrid, electric, and CNG vehicles will help manufacturers meet their compliance

targets. The evolution of gasoline technology also means that the same standards can

be met at lower cost with gasoline engines rather than diesel engines. As the impact

of the ﬂexibility mechanisms grows, MoRTH should also publish detailed compliance

information to allow for a thorough understanding of the impact that each individual

technology is having on the overall ﬂeet compliance. This could also help in analyzing

whether the particular technology has reached a wide penetration in the market and

could therefore be removed from the beneﬁt list.

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Appendix

Manufacturers Referred name

BMW India Pvt. Ltd. BMW

FCA India Automobiles Pvt. Ltd. FCA

Force Motors Ltd. Force Motors

Ford India Pvt. Ltd. Ford

General Motors India & CSIPL General Motors

Hindustan Motor Finance Corporation Ltd. HMFCL

Honda Cars India Ltd. Honda

Hyundai Motor India Ltd. Hyundai

Isuzu Motors India Pvt. Ltd. Isuzu

Jaguar Land Rover Jaguar

Corporate Group - Mahindra & Mahindra Ltd.

(Mahindra & Mahindra Ltd & Mahindra Electric Mobility Ltd.)

Mahindra

Maruti Suzuki India Ltd. Maruti

Mercedes-Benz India Pvt Ltd. Mercedes

Nissan Motor India Private Ltd. Nissan

Renault India Private Ltd. Renault

Tata Motors Ltd. Tat a

Toyota Kirloskar Motor Pvt. Ltd. Toyota

Skoda Auto Volkswagen India Private Ltd. Skoda

Volvo Auto India Pvt. Ltd. Volvo

MG Motor India Pvt. Ltd. MG