China’s fuel economy strictures could hurt small auto players

ERJ staff report (BC)

Beijing – China imposed long-debated stringent fuel economy standards on 20 March, report Fang Yan and Norihiko Shirouzu of Reuters.

This is expected to make life tougher for cash-strapped small domestic brands that are already struggling amid a slowdown of the world’s biggest auto market.

The rules, jointly issued by five government bodies including the National Development and Reform Commission, would cut passenger cars’ average fuel consumption to 6.9 litres per 100 kilometres by 2015 and down further to 5.0 liters by 2020.

“That’s…

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