The central government has released a draft of new corporate average fuel economy standards for passenger vehicles. The new rules will come into effect from April 1, 2027. The main objective of this policy is to increase the mileage of cars and prevent environmental pollution. With this, ethanol, hybrid and EV cars will be cheaper. Polluting petrol-diesel vehicles may become expensive.
Under the new policy, the government will provide super credit to companies in the field of EV and hybrid car sales. If a company sells one electric car, it will be considered equivalent to 3 cars on paper. One hybrid car will be treated as 1.6 cars. This will make it easier for companies to meet their pollution reduction targets. In such a situation, companies can sell these cars with attractive prices and offers. It will be a problem for car companies that pollute more or give less mileage. If the average pollution limit of a company exceeds the prescribed pollution limit, then less credit will be available. To compensate for that loss, companies will have to buy credits from other companies or the government. The cost of which will be between Rs 2500 and Rs 4500 per gram of carbon dioxide.
The company will not bear the burden of this penalty. The price of the cars that pollute more will be increased and it will be recovered from the customers. Due to this change, the entire strategy of automobile companies will change. They will focus on bringing environment-friendly technology models. Petrol-diesel models will be phased out. Flex-fuel cars Vehicles running on 85% to 100% ethanol-based fuel will get a discount of 22.3%. In the case of a flex fuel car sale, this would be considered 1.1 on paper.
