Under new norms, all passenger vehicles should see an increase of at least 14% in mileage from 2016-17 and 38% in the following five years. The basic mandate under these new regulations will see mileage of 18.2 kmpl by 2016-17 and 22 kmpl by 2021-22. The current limit is 16 kmpl for cars, vans and utility vehicles.
Total fuel consumption will be based on weight of the vehicle, while eight varying weight categories have been proposed. These new standards will be executed by the Ministry of Road Transport and Highways of India and will put India in the same category as the United States, Germany, Japan and China where such strict norms of fuel efficiency are already in place. Once these norms are implemented, failure to comply will result in severe penalties for car manufacturers.
Fuel consumption will be calculated on the basis of weight of the vehicles. Once this new mandate comes into effect, saving of fuel by 2025 could be to the tune of 20 million tonnes which in turn will result in a gain of 90,000 crores per year. (via)