1. CO2 and the Road Transport Sector in India
OICA Round Table
21 October 2010
New Delhi
CO2 and the Road Transport Sector in India
Dr. Pawan Goenka
President SIAM
President Automotive and Farm Equipment Sectors,
Mahindra & Mahindra Ltd.

2. Indian Auto Industry to Double its contribution to GDP by 2016
$145 bn by
F16
16% CAGR
Vision 2016
“By 2016, India will emerge as the destination of choice in Asia for the design & manufacture of automobiles and automotive components. The output of the India’s automotive sector will be $ 145 billion by 2016, contributing to 10% of India’s Gross Domestic Product and providing employment to 25 million persons additionally.”
$34 bn In
F07
Source : SIAM & AMP

3. Future Scenario
Road transport sector in India presently contributes % of total CO2 emissions in India.
Vehicle kilometers traveled expected to grow 5 times from
Majority of India’s population does not have access to motorized transport.
Freight transport would continue to grow
It is estimated that CO2 from transport sector under BAU scenario will be about 600 Million Metric tones per year in 2020.
Still not alarming in comparison to developed countries

4. Drivers to Fuel Efficient Transportation
Customer Pull
Fuel efficiency labeling and regulation
Expert Group on Strategy for Low Carbon Economy
Clean Technology

5. Customer Preference in India
Why People Buy…
Entry Level
Compact Car
Entry Mid Size
Top Rank
Low Price
Good FE
Rank 2
Comfort
Looking at JD Power Appeal 2006 studies,
Good Fuel efficiency and Low price are very high in customer mind while taking a buying decision.
If we look at the earlier Studies from JD Power, Fuel efficiency has achieved greater relevance today than earlier years.
In fact Initial Price and Poor Fuel Economy are two main Parameters which a buyer considers for not Buying a seriously considered option today even in the Premium Mid size sedans.
Source: J D Power Appeal Study 2006

6. Fuel Price…Pinches Most in India
Average of 0.3
Source : Fuel Price - Internal SIAM Data
Per capita Income - World Bank Data for the Year 2005

7. Driving Growth of Small - Fuel Efficient Cars
Car Sales ‘000

8. Drivers to Fuel Efficient Transportation
Customer Pull
Fuel Efficiency labeling and regulation
Expert Group on Strategy for Low Carbon Economy
Clean Technology

9. Fuel Efficiency Labeling and Regulation
FE Labeling for consumer information
Voluntary declaration by SIAM members started
Mandatory labeling to be announced soon
Fuel Efficiency norms being worked out

10. Drivers to Fuel Efficient Transportation
Customer Pull
Fuel Efficiency labeling and regulation
Expert Group on Strategy for Low Carbon Economy
Clean Technology

11. SIAM Estimates of Possible Reduction
Reduction of CO2
Emissions from Transport
Reduce CO2 / km
Reduce km Travel
Clean
Technologies
New Vehicles
Tighter
CO2 Norms
Retirement
Policies
Inspection &
Certification
Urban
Planning
Shift to
Public
Transport
Intelligent
Transport
Systems
1~2%
2~4%
~10-15%
5~7% x%
10~12% y%

12. Short Term Road Transport Carbon Mitigation Options
Maximum Benefit
Fleet Modernisation & Recycling policies
Increase effectiveness of Public Transport & better Urban Planning
Moderate benefits
Fuel Efficiency regulations for new vehicles with long-term road map coupled with emission regulations
Improvement in In-Use Vehicle Inspection & Maintenance
Niche applications due to low volumes
Natural Gas Vehicles
Electric, Fuel cell and Hybrid technologies
Use of Bio-Fuels
SIAM also highlighting the importance of Integrated Approach for overall CO2 reduction in India to Government of India

13. Proposals for New Vehicle CO2 Regulations in India
New Fleet average of India reduced from 6-7% from to 2010
Company fleet average standard as in EU
Passenger Cars CO2 regulation for 2012
Further tightening 2015 and 2020
Discussion with Government underway to finalize the regulation
Policies being framed with an objective of energy security in addition to CO2 reduction

14. Drivers to Fuel Efficient Transportation
Customer Pull
Fuel Efficiency labeling and regulation
Expert Group on Strategy for Low Carbon Economy
Clean Technology

15. Gaseous Fuel Vehicles Liquefied Petroleum Gas (LPG)
Three-Wheelers & few Two-Wheelers
Cars – Dual mode
Limited Infrastructure
Compressed Natural Gas (CNG)
More than 500,000 vehicles on Indian Roads
Buses, Taxis, Three-Wheelers and Light Trucks
Delhi, Mumbai, Cities of Uttar Pradesh, Andhra Pradesh & Gujarat
CNG Pipelines for new areas

16. Other Alternative Fuels & Technologies
Ethanol
5% Ethanol mandated for blending in Gasoline
Cabinet approved 10% Blending
Proposed labeling of dispensing units
Bio-Diesel
Planning commission target to achieve 20% blending with Diesel.
Availability ?
Electric Vehicles
Two-Wheelers, Cars & Three Wheelers
Challenges of recharging vehicles
Affordability
Hybrid Cars
National Hydrogen Propulsion Programme
Demo Vehicles
Pre-competitive collaboration
Hydrogen
Pilot H-CNG Vehicle Development

17. Thank You
SIAM
Society of Indian Automobile Manufacturers