Fuel consumption standards for the new two-wheeler fleet in India

The shift to fuel injection in two-wheelers that has come with India’s implementation of Bharat Stage VI emission standards brings with it the opportunity to adopt several modern internal combustion engine (ICE) technologies from the passenger car, limited only by cost-bracket considerations and vehicle size. These incremental technologies can unlock opportunities for significant efficiency benefits, and as this briefing demonstrates, setting corporate average fuel consumption standards for the new two-wheeler fleet would be an effective way to both spur the adoption of modern ICE technologies and accelerate electrification. The analysis showed that achieving fleet average fuel efficiency improvement for two-wheelers beyond 23% from the current level is more expensive if using ICE technologies alone. Beyond this threshold, it is cost-effective to increase the market share of electric two-wheelers.

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