Indians to become more fuel efficient... - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indians to become more fuel efficient...

Jul 21, 2008

The Indian government is poised to issue new, voluntary fuel-efficiency norms for four-wheeler passenger vehicles that will be made mandatory and more stringent starting 2010. It is estimated by the government that three in four passenger vehicles in India are so-called three stars, or having fuel efficiency equivalent to 12.6-16.8 km per litre of petrol. Under the norms, regardless of engine size, car buyers will have to be provided comparative information on fuel economy about passenger vehicles in the market. At the same time, the new norms could help boost sales of hybrid vehicles, which allow the use of petrol and an alternative fuel sources in India. Also, as in the case of energy efficiency labeling for appliances such as air conditioners and refrigerators, it will begin with a voluntary code that will later be made mandatory. The road transport and highways ministry estimates there were about 100 m vehicles on Indian roads at the end of 2007, of which about 17% were passenger vehicles. The Bureau of Energy Efficiency (BEE) anticipates that three-fourths of vehicle models in the market will receive a three-or four-star rating at present and the combination of fuel economy standards and labeling programme will provide the necessary impetus for development of several five-star rated vehicles by the end of first phase of labeling programme. Preliminary estimates show that the labeling programme will result in up to 20% reduction in oil use in year 2030 just from passenger vehicles.

...but not like the Japanese!
According to the International Energy Agency (IEA), Japan, by many measures, is the most energy-efficient country among the world's developed nations. After the energy crises of the 1970s, the country forced itself to conserve with government-mandated energy-efficiency targets and steep taxes on petroleum. Energy experts also credit the same to a national consensus on the need to consume less. It is also the only industrial country that sustained government investment in energy research even after oil prices fell.

Japan had consumed only half as much energy per dollar worth of economic activity as the European Union or the United States, and one-eighth as much as China and India in 2005. While the country is known for its green products like hybrid cars, most of its efficiency gains have come in less eye-catching areas, for example, by cutting energy use in manufacturing.

Corporate Japan has managed to keep its overall annual energy consumption unchanged at the equivalent of about 200 m tons of oil since the early 1970s, according to Economy Ministry data. It was able to maintain that level even during the country's boom years of the 1970s and 1980s, as the economy doubled. Japan's strides in efficiency are clearest in heavy industries like steel, which are the biggest consumers of power. Over the past 36 years, the Japanese steel industry has invested about US$ 45 bn in developing energy-saving technologies. Now, they are used to power generators that produce nearly 90% percent of the electricity used by the steel plants. Such innovations allow the mill to produce a ton of steel using 35% less energy than three decades ago.

IEA believes that if the global steel industry adopted Japanese conservation measures, it could slash carbon emissions by some 300 m tons a year, equal to the greenhouses gases released annually by Australia.


Equitymaster requests your view! Post a comment on "Indians to become more fuel efficient...". Click here!

  

More Views on News

India's Drone Revolution is a 4x Profit Opportunity (Profit Hunter)

Sep 30, 2020

My research on India's leading defence companies brought me to one major player in drone manufacturing.

The Gold and Silver Bull Market is Not Over (Fast Profits Daily)

Sep 29, 2020

The last few days have been nerve-racking for bullion traders. Stay calm. The bull market still has a long way to go.

Earned Short Term Capital Gains on Shares? Here's What You Need to Know While Filing ITR (Outside View)

Sep 29, 2020

PersonalFN explains CBDT's clarification regarding scrip wise disclosure in ITR in case of short term capital gain.

This Smallcap is a Must Have Stock in Your Portfolio (Profit Hunter)

Sep 29, 2020

Investing in this smallcap could open doors of huge, long-lasting wealth.

Why the Market May Rally for a Few Days (Fast Profits Daily)

Sep 28, 2020

Why I think the market can rise for the next few days.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Sep 30, 2020 11:11 AM

MARKET STATS