FUEL EFFICIENCY NORMS FOR

TRUCKS & BUSES IN INDIATRUCKS & BUSES IN INDIA

Satish Sharma

Chief Projects Manager

Indian Oil Corporation Limited

WHY FUEL EFFICIENCY NORMS

FOR TRUCKS & BUSES?FOR TRUCKS & BUSES?

Why Fuel Efficiency Norms…

• Energy Security

• Climate Change Mitigation

• Economic Growth

• Quality of Life• Quality of Life

• Individual user’s fuel cost

SALES OF BUSES AND TRUCKS

Strong growth in sales of buses and

trucks in the last decade• Annual sales of trucks and buses in India has grown at a CAGR of around 20 per cent and 1 per cent between 2001-02 and

2011-12.

• Major reason for flat growth in buses is

– Drastic reduction in demand for vehicles in MM≤ 5 tonnes (M2 (A1)) category, which has gone down from 59,481

buses in 2001-02 to 8,650 buses in 2011-12.

– Excluding this segment, annual sales of buses in India has grown at a CAGR of around 12 per cent.

682800

Buses Trucks

9089 110 118

108 107 111 99 109 93 99111149

209261 288

390 399

312

437

563

682

0

100

200

300

400

500

600

700

800

in '0

00

ve

hic

les

Buses Trucks

Source: PCRA

Changing sales mix of trucks in India

• With “Hub & Spoke” model increasingly adopted across India, there is clear

evidence of polarization of tonnage in the CV segment towards heavy and lower

tonnages

• The share of vehicles in MM≤3.5 tonne category and MM>25 tonne category in

the total domestic truck sales has grown substantially between 2007-08 and 2011-

12.12.

MM≤3.5

39.4%

3.5<MM≤5

0.6%

5<MM≤7.5

7.1%

7.5<MM≤12

10.2%

12<MM≤16.2

15.1%16.2<MM≤25

26.8%

25>MM

0.7%

2007-08

MM≤3.5

52.9%

3.5<MM≤5

1.2%

5<MM≤7.5

6.1%

7.5<MM≤12

9.8%

12<MM≤16.2

8.9%

16.2<MM≤25

11.5%25>MM

9.5%

2011-12

Source: PCRA

Changing sales mix of buses in India

• Buses in the segment 5>MM (M2 (A2)) and 7.5<MM≤12 have registered the

fastest growth indicating the increasing demand for intra-city travel

• Growing demand for buses in the MM>16.2 category, which are the buses in the

luxury segment used for inter-city travel.

2007-08 2011-12

5>MM

(M2(A2))

9.1%

5<MM≤7.5

16%

5>MM

(M2(A1))

40.0%

7.5<MM≤12

5.0%

12<MM≤

16.2

29.9%

16.2>MM

0.0% 5>MM

(M2(A2))

18.9%

5<MM≤7.5

22%

5>MM

(M2(A1))

8.8%

7.5<MM≤12

15.0%

12<MM≤16.2

34.6%

16.2>MM

0.4%

2007-08 2011-12

Source: PCRA

Estimated Vehicle Park

• There are around 1.3 million buses and 4.2 million trucks plying on the roads in India.

• Buses in the 5>MM (M2(A1)) category form the largest segment of on-road buses at

around 45%.

• In case of trucks, vehicles with MM ≤3.5 form about 36.5% of the total on-road trucks.

Bus Vehicle Park Trucks Vehicle ParkBus Vehicle Park Trucks Vehicle Park

Source: PCRA

5>MM

(M2(A2))

9.9%

5<MM≤7.5

13.1%

5>MM

(M2(A1))

45.1%

7.5<MM≤12

4.8%

12<MM≤

16.2

27.0%

16.2>MM

0.1%

MM≤3.5

36.5%

3.5<MM≤5

0.9%

5<MM≤7.5

10.4%7.5<MM≤12

9.5%

12<MM≤

16.2

18.2%

16.2<MM≤

25

16.0%

25>MM

8.4%

Future vehicle projections

� Rising incomes, increasing government

focus on infrastructure development

and increasing economic activity are

the key drivers, which are expected to

fuel the demand for commercial

vehicles in India

� Between 2012-13 and 2024-25, sale of

Estimated number of on-road buses and trucks

15.0

20.0

25.0

Source: : IMaCSAnalysis

� Between 2012-13 and 2024-25, sale of

buses is expected to grow at a CAGR of

5.7 per cent to increase from 0.11

million to 0.21 million

� Trucks sales is estimated to register

strong growth of around 8.9 per cent

to increase from 0.80 million in 2012-

13 to 2.23 million in 2024-25

� Total number of on-road buses and

trucks in 2025 is estimated to be

around 23 million

0.0

5.0

10.0

15.0

2011-12 2019-20 2024-25

1.3 1.8 2.34.2

12.8

20.9

Buses Trucks

in million

DIESEL CONSUMPTION IN INDIA

� India’s total Petroleum Products consumption in 2012-13 stood at about 157.1 MMT.

� Diesel consumption in 2012-13 stood about 69.0 MMT.

� Road transport is the biggest segment accounting for about 70% of diesel consumption

� Trucks and buses accounted for about 77% of the fuel consumed in this segment

Diesel consumption pattern in India

Source: PPAC

Heavy commercial vehicles (HCV) consume

overwhelming share of fuels in India

Source: ICCT

BASICS OF FUEL EFFICIENCY

NORMSNORMS

� Approaches to the design of fuel consumption target values,

� Stringency of the target,

� Timing of introduction

Fuel consumption standards typically includes

� Compliance roadmap

� Fuel consumption standards based on

1) GVW or Kerb weight

2) Segments of buses and trucks

� Type of fuel consumption standards

1) Engine standards

� Testing procedure for fuel economy test

1) On-road testing

2) Engine testing

3) Chassis + Engine testing

4) Computer simulation

Dimensions of fuel consumption standards for

diesel (engine-driven) buses and trucks

2) Vehicle standards

� Unit(s) of fuel consumption standards –

km/L or L/km or L/ton-km or L/kWh

� Alignment of fuel consumption standards and

emission standards

� Test cycles for fuel consumption testing

• There are two main categories of possible approaches fordefining these standards:-

1) Absolute target value : Across all vehicles and all manufacturersregardless of size, weight, etc. of the vehicle fleet

Fuel consumption standards are typically set as fuel

consumption targets based on average of the total fleet of

vehicles sold (corporate average fuel economy)

2) Attribute-based target value : Across all vehicles for eachmanufacturer, where the target varies depending on the averageweight or size of the vehicles sold by a manufacturer. Can berepresented using:-

• Continuous function or curve

• Target value in each category

• Attribute-based continuous curve approach (with separate standards for trucks

and buses) should be the preferred option in the first phase of implementation of

the standards

• This approach will provide enough flexibility for manufacturers without being

unfair or cost ineffective to any manufacturer, while ensuring that the target is

Both Japan and the US have adopted Attribute-based target

HDV standards based on vehicle categories

unfair or cost ineffective to any manufacturer, while ensuring that the target is

achieved.

Simulation and Testing options for measurement of vehicle

fuel economy

� Computer simulation of the whole vehicle (typically in combination with engine testing

on a bench dynamometer) is the option favoured by industry and the governments in

other countries

� China is planning to use chassis dynamometer for main HDV vehicle families and

computer simulation for variants

Improve vehicle and trailer aerodynamics

Improve

engine

efficiency

Reduce

vehicle weight

Optimize driver behavior

There are many opportunities to reduce fuel

consumption of heavy vehicles (including buses).

Identify the role of engine, transmission, rolling resistance, and aerodynamic improvements in Indian context

19

Reduce rolling

resistanceImprove transmission

and drivetrain

efficiency

Reduce

auxiliary loadsSource: ICCT

Truck fuel economy improvement technology

matrix

Category TechnologyFuel improvement Technology Market

readypotential cost range (USD)

Engine Variable valve actuation 1% to 2% 300 to 600 �

Engine Controllable air compressor 3.50% ~200 �

Engine Start/stop automatic 5% to 10% 600 to 900 �

Engine Dual fuel systems 10% to 20% ~33 000 �

Engine Pneumatic booster: air hybrid Up to 4% 800 to 1 000Engine Pneumatic booster: air hybrid Up to 4% 800 to 1 000

EngineTurbocompound (mechanical/electric)

4%/7% ~3 000/8 000 �

Engine

Bottoming cycles/waste heat recovery 1.5% to 10% 15 000 to 16 000(e.g. organic Rankine)

Notes: red = short-haul, medium freight trucks; green = long-haul, heavy-duty trucks; black = all truck types.Sources: PCRA, IMaCS

Integrated Vehicle Efficiency Policy Portfolio

VEHICLE FUEL EFFICIENCY STANDARDS

FISCAL MEASURES

• Introduce and regularly strengthen mandatory standards

• Establish and harmonize testing procedures

for fuel efficiency measurement.

• Fuel taxes and vehicle taxes to encourage the purchase of more fuel-efficient vehicles.

• Infrastructure support and incentive schemes

for very fuel-efficient vehicles.

To

da

y’s

pre

se

nta

tio

n

MARKET-BASED APPROACHES

INFORMATION MEASURES

for very fuel-efficient vehicles.

• Voluntary programs such as U.S. SmartWay and other green freight programs

• Vehicle fuel economy labels • Improving vehicle operational efficiency

through eco-driving and other measures.

To

da

y’s

pre

se

nta

tio

n

HDV GLOBAL

REGULATORY LANDSCAPEREGULATORY LANDSCAPE

HDV global regulatory landscape

Country/

Region

Regulation

Type2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Japan Fuel economy Phase 1 regulation implemented starting MY 2015

United

States

GHG, Fuel

efficiency

Standard

proposal Final rule

Regulation implemented starting MY 2014

(mandatory DOT program starts MY 2016)

Phase 2

development

Phase 2

implementation

ChinaFuel

consumption

Test

procedure

finalized

Industry

standard

proposal

Industry

standard

implemented

National

standard

adopted

Regulation implemented

starting MY 2015

Next phase

national standard

23

Items in blue are ICCT expectations (not public announcements); Voluntary green freight programs

consumptionfinalized proposal implemented adopted

European

Union

CO2 test

procedureTechnical studies Impact assessment

Test procedure

finalized

Policy implementation

for CO2 reporting

Canada GHG, fuel

efficiency

Standard

proposalFinal rule Regulation implemented Phase 2

Korea Fuel efficiency Technical studiesImpact

assessment

Test

procedure

finalized

Policy

implementation

Mexico Fuel efficiency ProposalRegulation

implemented

California

End-user

purchase

requirements

Requirements for

new tractors, trailers

Additional reqs. for existing tractors

and trailers (<MY 2010)

Additional reqts. for existing trailers and reefers

(<MY 2010)

Source: ICCT

Regulatory Design Summary

Regulatory Categories Certification Test Procedures Metric

Japan

Other Truck (11 subcategories)

Tractor (2 subcategories)

Route Bus (5 subcategories)

Other Bus (8 subcategories)

Simulation modeling + engine

dynamometer testing

Fuel economy

(km/L)

TractorsVehicles �

simulation model

Tractors,

VocationalHD Pickups Engines

24

N. AmericaVocational vehicles

HD pickup trucks and vans

Engines (tractors, voc. vehicles)

simulation model

Engines �

dynamometer testing

gal/1,000

ton-migal/100 mi

gal/100

bhp-hr

g/ton-mi g/mi g/kWh

ChinaTractors, dump trucks, rigid trucks, city

buses, other buses

“Base” vehicles �

chassis dynamometer

“Variant” vehicles �

simulation modeling

Fuel consumption

(L/100 km)

European Union*

Truck and bus categories based on GVWR,

chassis configuration, and axle

configuration

Simulation modelingGHG

(g/tonne-km)

*Regulatory design is currently under development in the EU. This information represents an upcoming

certification approach for HDV CO2, not necessarily a performance-based regulation.

Source: ICCT

Efficiency improvements promoted by different regulations

* Potentially Mexico as well

** Option to use default values# Refers to ongoing government research and testing protocols; No standards in place

Source: ICCT

APPROACH IN INDIAN

CONTEXTCONTEXT

Non-availability of fuel efficiency data for diesel (engine-

driven) buses and trucks is a major challenge in setting up

fuel consumption standards

� One of the pre-requisites for development of fuel consumption standards is collection of baseline data for

various models of buses and trucks under pre-defined test conditions

� For establishing the baseline for fuel consumption standards, fuel consumption or fuel economy data

under standardised test conditions is required for each model of buses and trucks for all manufacturers

for the baseline year

� One of the biggest challenges for developing fuel consumption standards for trucks and buses is non-

availability of any reported fuel economy data of trucks and buses, either by manufacturers or bodies like

ARAI because fuel efficiency tests of diesel (engine-driven) buses and trucks are not mandatory, hence,

27

ARAI because fuel efficiency tests of diesel (engine-driven) buses and trucks are not mandatory, hence,

manufacturers do not provide fuel efficiency details of various diesel (engine-driven) buses and trucks as

part of technical specifications (in most cases).

Categories can reasonably be assigned according to Gross

Vehicle Weight (GVW) for Attribute-based continuous

curve approach

As there are large differences in applicable technologies for light, medium and heavy

commercial vehicles, categories can reasonably be assigned according to gross vehicle weight.

Creating too many categories is not a good option because the number of vehicle typesin each category would be too small to develop appropriate target values. Further, theadministrative costs for developing target values would also increase for a larger numberof categories.

28

of categories.

Committee has been given 15 months time for

finalizing the policy from 1st July 2014

• In first phase engine standard is suitable for making norms based on engine

dynamiter testing.

• There are certain testing procedures which are Law of the Land, hence, instead of

having new sets of rules, it would be prudent to go forward as per these defined

testing procedures.

• Separate norms may be fixed for truck and buses based on test results obtained.

• In agreement with manufacturer, time frame and target can be arrived for

29

• In agreement with manufacturer, time frame and target can be arrived for

implementation of first phase target.

CONCLUSION

• By implementing, fuel efficiency norms for

trucks and buses in India, the nation will

enhance energy security and mitigate

emission to great extent.emission to great extent.

Thanks for patient hearing!