Policy update
China Stage 4 fuel consumption standard for light commercial vehicles
China’s Stage 4 fuel consumption standard for light commercial vehicles, set to take effect in 2026, tightens per-vehicle fuel consumption limits, introduces a corporate average fuel consumption (CAFC) requirements, and expands coverage to include new energy vehicles like battery electric and fuel-cell electric models. This regulation lifts per-vehicle limits by roughly 10% over Stage 3 and offers flexibility mechanisms such as off-cycle credits and electric vehicle multipliers. These updates support China’s broader goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.
Figure. Timeline of China’s fuel consumption standards for light commercial vehicles
The policy represents a potent shift in China’s approach to reducing emissions from light commercial vehicles. Some highlights:
- Adoption of a linear regression-based system, instead of a weight-class system, for fuel limits to support equity in compliance; this prevents manufacturers from slightly increasing vehicle weight to follow more lenient standards.
- Broader vehicle coverage: The new standard expands the scope to include new energy vehicles and vehicles powered by gaseous fuels and alcohol ethers.
- CAFC management mechanism and flexibility: CAFC targets are set till 2030 and incentivize manufacturers with off-cycle credits and special multipliers to focus on electric and energy-saving technologies.
