Fuel Economy/Consumpti

onMoroccan Case study

Center for Environment and Development For The Arab region and Europe.

Fuel Economy/ConsumptionFuel economy (Miles per Gallon)

A measure of maximum distance covered by a vehicle

Fuel consumption (Liter per/ 100 km-Gallons/100 miles)Amount of fuel saved in lower ranges of MPG

higher than those in higher rangesConsumer convenience

Vehicle Energy EfficiencyEngine

Losses (friction &pump)

Aerodynamics & Tires

Transmission Terrain

Balancing shafts

Bore-to-stroke ratio

Weight& Fuel

StandardsEuropean Union

Entire fleet based on mass of a vehicleSliding scale application of standardsTightening regulationsOverlooking technology

USAFirst standards: determined solely by production

levelModified Standards: Size based accounting for

sales levels. Sole reliance on vehicle size

Driving cycleEnforcement agency

Test figures presented by manufacturers Cycle based on local conditions: driving patterns

and behavior , road types and elevations levels, etc.

CAFÉ, NEDC, Japanese and South Korean .

Approach and limitationsGFEi definition of LDVs

Sales of new LDVs in the study years. Data obtained from manufacturers through an automotive markets consultant

Official figures for co2 emissions and fuel economy/consumption are used based on NEDC

Data was not obtained for 1% of new LDVs.

Parallel market sales were not obtained

Total Number of Vehicles on the Road

LDVs sales

Moroccan Macro IndicatorsMotorization rates (Vehicles per 1000

inhabitants): 81-84 much higher than Egypt and Moroccan (OICA, 2012)

Urbanization rate: 57.7 %, considerably higher than Egypt’s and lower Tunisia’s

GDP per capita at PPP : more than $6,600 for 2011-2013 (CIA, 2014)

Average GDP growth from 1999 to 2014: 4.43

Moroccan Trends Explanation

Motorization rate correlates with urbanization rate

Constant increase in total number of vehicles on the road

New LDVs sales show steady increase

Rate of increase lower than Egypt’s ?

+

Policy EnvironmentVAT ranges between 7 and 20% in two schemes

for imported and domestic cars, lower than Tunisia’s.

In 2012 customs on European cars were levied. 17.5% for Asian cars and a lower rate for American one due to FTA

Free competition between authorized dealers due to government strategy of encouraging vehicles ownership

Less intense subsidy system

Policy EnvironmentRegistration fees proportional to horsepower

Annual taxes for different horsepower ranges on a sliding scale

Luxury cars subject to additional taxes function of cost

Fuel economy/Consumption

data

Fuel economy/consumption

data

CO2 Emissions Data

CO2 Emissions data

TrendsFuel consumption/economy lower than both OECD and

non-OECD averages of 7-8 Liter/100km levels for 2005, 2008 and 2011 levels.

Weighted harmonic averages for fuel consumption/economy for diesel LDVs were always few decimal points above 4 liters/100 km

LDVs and CO2 emissions data display similar patterns

Fuel economy/consumption of diesel LDVs is lower than petrol’s LDVs

Weighted average co2 emissions for 2009 were considerably higher than those for 2012 and 2013.

TrendsDiesel LDVs comprise average passenger cars.

Weighted average diesel LDVs were higher than unweight average in 2009

Weighted average petrol LDVs were lower than unweight one in 2009

Trend set on a course of reversal as of 2012

Explanation Less intense subsidies, lower diesel pump prices

and gender preferences are raising the levels of fuel efficiency-consciousness in Morocco. They curb the impact of slashed tariffs.

Predominance of European cars thus capitalizing on increasingly stringent European standards

Higher weighted average co2 emissions in 2009 due to the sale of certain models, not sold in 2012 & 2013, associated with high co2 emissions levels.

Gender preferences affect the trends.

Needs

Opportunities Export orientation sets limits on the introduction of strict local fuel

economy standards.

Focus on European markets can pull towards more technologically sophisticated LDVs

Government support to automotive industry gives some leverage in regulating the market.

Investment charter and liberalized LDVs market rule out import restrictions

A combination of registration fees and vehicles taxations are already in place.

Increasing democratization, providing venues for a transparent, across-the-board societal dialogue.

Way ForwardIntroduction of weight & engine-sized based

criteria into the vehicle tax system

Development of policies directed at promoting energy-efficient technological attributes.

Drawing on international expertise in developing the abovementioned policies.

Way ForwardLinking policies to attainable fuel consumption

savings in absolute terms

RecommendationsEstablishment of a multi-stakeholder resident

committee to prepare a roadmap for the introduction of fuel economy standards

Drawing on international expertise in advising the committee on preparation and implementation of standards and import restrictions linked to accruing fuel savings.