Fuel Economy of Passenger Cars in the Global South: A case of two steps forward, one step back as fuel economy improvements are reduced by increasing car power and weight Fuel Economy of Passenger Cars in the Global South: A case of two steps forward, one step back as fuel economy improvements are reduced by increasing car power and weightBy Sudhir Gota, Independent ConsultantJune 2023 2FUEL ECONOMY OF PASSENGER CARS IN THE GLOBAL SOUTHAcknowledgementsThis report assesses the fuel economy of passenger vehicles in the Global South and has been carried out mainly through the financial support of the European Commission, FIA Foundation and UNEP.AuthorSudhir Gota, Independent ConsultantReviewerSustainable Mobility Unit, UNEPDisclaimersThe content and views expressed in this publication do not necessarily reflect the views or policies of the United Nations Environment Programme (UNEP). Neither do they imply any endorsement. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of UNEP concerning the legal status of any country, territory, or city or its authorities, or concerning the delimitation of its frontiers and boundaries. Mention of a commercial company or product in this publication does not imply the endorsement of UNEP.ReproductionThis publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. UNEP would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or any other commercial purpose whatsoever without prior permission in writing from UNEP. A For bibliography purposes this document may be cited as:“Fuel Economy of Passenger Cars in the Global South: A case of two steps forward, one step back as fuel economy improvements are reduced by increasing car power and weight” June 2023 31. Executive Summary ..........................................................................................................................42. Introduction ......................................................................................................................................83. How is the Fuel Economy Baseline Determined? .............................................................................124. What is the Fuel Economy Status of the Passenger Cars in the Global South? .................................145. What is the Status of the Passenger Car Market? ............................................................................186. Drivers of Fuel Economy Trends in the Global South........................................................................22a. Engine Displacement ......................................................................................................................................23b. The Race for Weight and Power ...................................................................................................................25c. Diesel Disappointment ....................................................................................................................................28d. What is the Spill Over Impact of Used LDV Trade? ...................................................................................30e. Is Fuel Economy Getting Prioritised in Policies?........................................................................................327. What are the Implications of the Current Fuel Economy Trends in the Global South? .......................34a. Scenarios ...........................................................................................................................................................35b. How the Scenarios Compare with the GFEI Target? .................................................................................35c. Overall Impact of Fuel Economy Interventions in the Global South ......................................................368. Conclusion .....................................................................................................................................38Annex 1 – List of Countries Assessed in this Report ...............................................................................40Annex 2. Country Overviews ...................................................................................................................41Contents 4FUEL ECONOMY OF PASSENGER CARS IN THE GLOBAL SOUTH1. Executive Summary 5Transport is a major contributor to carbon dioxide and other harmful pollutants. A shift to cleaner and more efficient vehicles, including electric mobility, has been prioritized as a key solution to limiting transport emissions and saving on fuel consumption among other co-benefits. While there has been, generally, considerable progress in most of t