Surging oil prices and growing concerns about meeting targets to cut greenhouse gases produced by gasoline and diesel have revived efforts around the world to improve fuel efficiency perhaps nowhere is the interest greater than here in Japan. As per the latest Japanese car news, Japanese government is planning to impose new rules on Japanese automakers that will require them make their vehicles around 20 percent more fuel efficient by fiscal year 2015. 

Fuel Efficient Car

These rules will apply to all Japanese automakers as well as car manufacturers such as DaimlerChrysler AG that compete in the country.  Although failure to meet Japanese government regulations only brings a nominal fine of 1 million yen ($8,600), the government can release the names of car makers not meeting the regulations, thus resulting in negative publicity. Current regulations require Japanese car makers to have improved fuel efficiency for gasoline cars by 23 percent by 2010/11 compared with levels at the end of March 1995. Most Japanese car models have now cleared that requirement.

‘Tighter fuel efficiency rules are a worldwide trend and Japan is no exception. This will help promote the use of hybrid and diesel engine vehicles. Gasoline vehicles by themselves are not going to be sufficient’, said Nomura Securities analyst Mr. Naruse.

Japanese auto makers including Toyota the world’s largest maker of hybrid vehicles, have been at the forefront of green auto technology for gasoline cars. Japanese government has also introduced a national campaign recently urging the Japanese to replace their older cars by hybrid vehicles, all part of a patriotic effort to save energy and fight global warming. And that’s another reason why Japanese car makers are jumping on the bandwagon, counting on the moves to increase sales of their latest models.

This move will have a big impact on the used car industry in Japan. As the older cars can not find buyers in Japan, many good used Japanese cars would be available for export.

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