Understanding WLTP 2024: implications for the automotive industry

Representative Image (Courtesy: Mercedes-Benz)

In the bustling world of the automotive industry, test procedures play a crucial role in ensuring vehicles meet regulatory standards and consumer expectations. Over the years, these procedures have evolved to reflect more accurate and real-world driving conditions. One such significant evolution is the Worldwide Harmonised Light Vehicles Test Procedure (WLTP), developed by the United Nations Economic Commission for Europe (UNECE). As we move into 2024, important changes to WLTP legislation are coming into effect, particularly impacting the German market, with potential ripple effects across Europe.

What is WLTP?

WLTP stands for Worldwide Harmonised Light Vehicles Test Procedure. It is a global standard for measuring fuel consumption, CO2 emissions, and pollutant emissions from cars and light commercial vehicles (LCVs). Introduced in September 2017 and becoming mandatory in September 2018, WLTP has replaced the older New European Driving Cycle (NEDC) test. Unlike its predecessor, WLTP offers a more realistic assessment of vehicle emissions and fuel consumption, reflecting actual driving conditions. This includes higher speeds, faster acceleration, and a wider range of driving scenarios.

Recent WLTP changes

In February 2024, Germany updated its Passenger Car Energy Consumption Labelling Ordinance (Pkw-EnVKV), marking significant changes for automotive retailers. The new regulations require that energy consumption and CO2 emissions be stated using WLTP figures. These changes aim to make it easier for consumers to understand the impact of their vehicle choices.

Key changes for automotive retailers in Germany

Guidelines for Online Selling

When selling cars online, automotive retailers must display car label information as soon as a prospective buyer configures a specific vehicle. This ensures customers receive the same level of information online as they would in a physical dealership.

Advertising Requirements

All advertising for new car models, including online platforms, must clearly include information about energy consumption, CO2 emissions, and the CO2 class. The aim is to make this information easy to read and understand, promoting transparency.

Updated Car Labels

Car labels now need to include information on energy consumption and CO2 emissions based on the WLTP standard, covering different driving conditions. This replaces the previous NEDC standard, aligning more closely with real-world driving data.

Clear CO2 Classification

The CO2 classification system now solely relies on the vehicle’s CO2 emissions per kilometre. Classifications range from “A” (zero emissions) to “G” (over 176 g/km emissions), irrespective of vehicle weight. This change simplifies the comparison of vehicles based on their environmental impact.

Display of CO2 Costs

Car labels must display an estimation of CO2 costs over a 10-year period, assuming an annual mileage of 15,000 kilometres. This estimation considers three potential CO2 price developments: low, medium, and high, helping consumers plan financially.

Different Labels for Different Vehicle Types

There are five different car label designs corresponding to the vehicle’s drivetrain and fuel type, including internal combustion engines, battery-electric motors, fuel cell drives, and plug-in hybrids. This differentiation aids consumers in comparing vehicles based on environmental impact and operating costs.

Special Requirements for Plug-in Hybrids

For plug-in hybrid vehicles, the car label must show both the weighted combined consumption/emissions and those with a discharged battery. Two CO2 classes should be displayed to cater to the unique nature of these vehicles.

Transitional Period for Compliance

Dealers, manufacturers, and online retailers have a grace period until 1st May 2024 to update car labels and advertising materials to meet the new standards.

Obligations at the Point of Sale

Dealers must attach a clear and visible car label to each vehicle displayed for sale. Additionally, a notice with key figures for all new car models displayed or offered at the point of sale is mandatory. A guide with uniform information on all new car models offered in Germany must be available for customers.

Why does WLTP matter beyond Germany?

Although these regulation changes currently affect only the German market, their implications extend beyond national borders. Adopting WLTP standards universally can streamline processes, saving money and time on future administrative tasks while enhancing the customer experience. Here are some key reasons why WLTP values are crucial for car buyers across Europe:

More Accurate Information

WLTP provides realistic testing conditions compared to the older NEDC test. The fuel consumption and CO2 emissions data presented to consumers are closer to real-world driving conditions, allowing for more informed decisions.

Improved Comparability

All vehicles are tested under the same standardised conditions, allowing better comparability and transparency between different models and brands.

Enhanced Configuration Accuracy

Any option that changes the vehicle weight, aerodynamics, or rolling resistance of the tyres can alter the WLTP values. Additionally, any specification change, no matter how minor, can also change these values. This accuracy ensures consumers get precise information.

Environmental Awareness

WLTP values help environmentally conscious buyers select vehicles with lower environmental impact, contributing to a more sustainable future.

Financial Planning

More precise information on fuel consumption and CO2 emissions enables buyers to calculate expected fuel costs and potential taxes, including CO2-based vehicle taxes, more accurately.

Driving Range for EVs and PHEVs

For electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs), WLTP provides more realistic driving range estimates. This is crucial for potential EV buyers concerned about range anxiety, ensuring they have a reliable estimate of how far the vehicle can travel on a single charge.

Regulatory Compliance

In many European countries, vehicle taxation and eligibility for incentives such as grants or reduced parking fees are based on CO2 emissions or fuel efficiency. More accurate WLTP figures ensure buyers can take full advantage of available benefits.

Vehicle Performance Insights

WLTP testing covers a broader range of driving scenarios, including different speeds, temperatures, and road types. Buyers have a clearer understanding of how a vehicle might perform in their typical driving conditions.

Confidence in Purchase Decisions

Armed with reliable and detailed information on vehicle performance, buyers can make more confident decisions, knowing that the data reflects more realistic usage scenarios.

Market Transparency

WLTP contributes to greater transparency in the automotive market, empowering consumers with information previously less accessible or reliable, encouraging a more consumer-friendly market environment.

The changes to WLTP legislation in Germany for 2024 mark a significant step in the automotive industry’s ongoing evolution towards more accurate and realistic vehicle testing. By adopting these new standards, the industry can ensure better comparability, transparency, and environmental awareness. Although these changes are currently specific to Germany, the principles behind them are likely to influence broader European markets, promoting a more informed and responsible approach to vehicle purchasing.

As the automotive landscape continues to evolve, staying informed about such regulatory changes is crucial for both consumers and industry stakeholders. The transition to WLTP reflects a broader commitment to accuracy and sustainability, setting the stage for a more transparent and environmentally conscious future in automotive testing and sales.

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