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Carmakers advised to sell fuel-efficient cars in US, EU, China

All Headlines 16:27 August 14, 2016

SEOUL, Aug 14 (Yonhap) -- Automakers need to sell more fuel-efficient vehicles in the U.S., European and Chinese markets to meet the local fuel economy target by 2020, a global report said Sunday.

Regulators in the U.S., EU, and China, the world's leading car markets with a collective annual demand reaching 40 million passenger vehicles, have all asked passenger car companies to improve their vehicles' fuel economy by 5.7 percent to 6.1 percent a year by 2020, according to the World Energy Council's (WEC) report titled "E-Mobility: Closing the Emissions Gap."

Carmakers will face penalties if they fail to meet the required improvement rates each year in those markets. In the U.S., for example, the sale of a car exceeding the local required emission rate will result in fines reaching 5.5 dollars per 0.1 mile per gallon (MPG).

The WEC report called on car manufacturers to respond to regulatory pressures and shift to their product portfolio to avoid any material penalties.

"To achieve the fuel economy improvement targets, the combined market share of electric vehicles needs to be increased to 16 percent by 2020. EVs should therefore be considered for a central role in any policy and technology portfolio designed to lower transport emissions," the WEC report said.

Although it currently accounts for less than 1 percent of overall vehicle sales in the three markets, electric vehicles will be key to meeting the required improvements in fuel economy by 2020, it said.

"As it appears to be hard to meet the improvement targets in the U.S. and EU with the current fuel economy technologies, we will try to meet the targets by increasing sales of electric vehicles, gasoline hybrid cars and hydrogen fuel cell cars," an official at Hyundai Motor said.

kyongae.choi@yna.co.kr
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