Japan 2030 fuel economy standards

In June 2019, Japan issued new fuel economy standards for passenger vehicles starting in model year 2030. The standards require an average fleet gasoline-equivalent fuel economy of 25.4 kilometers per liter by 2030, which is a 32.4% improvement over the fleet average for fiscal year 2016. The 2030 standards also include several improvements over Japan’s 2020 standards. For example, the scope is expanded to electric vehicles (and consequently upstream energy efficiency is considered), the test cycle has changed to the Worldwide Harmonized Light Vehicle Test Procedure (WLTP), and bin-based targets for different vehicle weights are replaced with a linear curve with a minimum fuel economy floor for the heaviest vehicles. The regulatory agencies plan to finalize all regulation details by the end of fiscal year 2020.