Vehicle Inspection & Maintenance in Asia: Status and Challenges

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1 Vehicle Inspection & Maintenance in Asia: Status and Challenges 2016

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3 2016 Clean Air Asia. All rights reserved. Clean Air Asia Center, Vehicle Inspection and Maintenance in Asia: Status and Challenges. Pasig City, Philippines. This publication may be reproduced in whole or in part in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. Clean Air Asia 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 for any other commercial purpose whatsoever, without prior permission in writing from Clean Air Asia. Disclaimer The views expressed in this publication are those of Clean Air Asia staff, consultants and management, and do not necessarily reflect the views of the Board of Trustees of Clean Air Asia. Clean Air Asia does not guarantee the accuracy of the data included in this publication and does not accept responsibility for consequence of their use. Acknowledgments Clean Air Asia is grateful to MAHA Maschinenbau Haldenwang GmbH & Co KG for their support for this study. This report was prepared by Melissa May Cardenas of Environweave Integrative Environmental Research, with the guidance and assistance of Ritchie Anne Guzman-Roño, Tanya Gaurano, Kaye Patdu, Alvin Mejia and Glynda Bathan-Baterina of Clean Air Asia. Data and inputs for the country policy profiles were accomplished through the invaluable assistance of Sameera Kumar Anthapur of the CAA India Office, Prashanta Khanal of Clean Air Network Nepal, and Chandramallika Ghosh of the CAA Center, as well as Ruth B. Guinto, Ana Criselda Flores, Prana Pambid, Luisa Julian Cepeda & Danae Pantano of Environweave Integrative Environmental Research for assisting in the policy & literature review for East and Southeast Asian countries. Previous studies done by Sudhir Gota and Bert Fabian, formerly of Clean Air Asia, also provided invaluable substance to this document. Special thanks to Atanu Ganguli of the Society of Indian Automobile Manufacturers for review of the Policy Profile for India, Jerey Estrada and Pia Agatep of Clean Air Asia. CONTACT Clean Air Asia Center Unit 3505, Robinsons Equitable Tower ADB Avenue Pasig City, 1605 Metro Manila, Philippines center@cleanairasia.org Clean Air Asia China Office 901A, Reignwood Building No.8 YongAnDongLi Jianguomenwai Avenue Beijing China china@cleanairasia.org Clean Air Asia India Office 1st Floor, Building No. 4 Thyagraj Nagar Market Lodhi Colony New Delhi India india@cleanairasia.org Country Networks China India Indonesia Nepal Pakistan Philippines Sri Lanka Vietnam About Clean Air Asia Clean Air Asia promotes better air quality and livable cities by translating knowledge to policies and actions that reduce air pollution and greenhouse gas emissions from transport, energy and other sectors. Clean Air Asia was established as the premier air quality network for Asia by the Asian Development Bank, World Bank and USAID in 2001, and operates since 2007 as an independent non-profit organization. Clean Air Asia has offices in Manila, Beijing and Delhi, networks in eight Asian countries (China, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka, and Vietnam) and is a UN recognized partnership of 230 organizations in Asia and worldwide. Clean Air Asia uses knowledge and partnerships to enable Asia s 2500 cities and national governments understand the problems, identify solutions and implement these effectively. Our four programs are: Air Quality & Climate Change, Low Emissions Urban Development, Clean Fuels and Vehicles, and Green Freight and Logistics. Our flagship event since 2002, the Better Air Quality conference, brings together more than 500 practitioners, policy makers and the private sector.

4 executive summary Asia is home to close to five hundred million vehicles, exhibiting rapid growth in vehicle fleet sales while maintaining an aging in-use vehicle population. Because of this, motorized transportation is a major source of outdoor air pollution in the region. Excessive emissions of gaseous pollutants and particulates by road vehicles can be attributed to the effective absence of regular periodic inspection and maintenance of vehicles. This report provides an update on the current institutional framework, policies and practices on vehicle inspection and maintenance (I/M) in twelve Asian countries/ administrative regions: Bangladesh, People s Republic of China and Hong Kong Special Administrative Region, India, Indonesia, Malaysia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka and Viet Nam. Relevant transport policy and emission standard updates were obtained through online resources and were compiled into individual Country Chapters. I/M policies and programs were then studied in relation to reports on enforcement, and supporting policies on new and old vehicles. These were further examined with respect to factors for success identified in several studies on I/M programs across the world. Key factors for successful I/M program implementation in the region include: Centralized I/M systems, developed through multi-agency collaboration at the early stages of planning, with a self-funding mechanism for regular audits of test centers. Localized studies on the full cost of I/M program enforcement that includes checks and assessments of the system should be conducted towards developing a self-sustaining program. Comprehensive and recurrent fleet characterization to guide I/M policies and strategies. Linking vehicle registration procedures with emissions and roadworthiness test results, through accessible databases, would give teeth to a mandatory periodic inspection policy. I/M program policies, infrastructure and campaigns should be designed with emphasis on identified vehicle types of concern, particularly two- and three-wheelers as well as diesel vehicles with high kilometers travelled. Timely and appropriate strengthening of I/M policies and emissions standards based the characteristics of the fleet and considering existing vehicle technologies, while advancing towards cleaner emissions. In the region, high failure rates in emissions tests may be symptomatic of underlying issues that need to be identified and subsequently addressed. A strong vehicle maintenance and repair service industry that is able to address the needs of vehicles that fail emissions testing. Maintenance services should be independently operated from testing centers to avoid conflict of interests that would reduce public trust in the program. In the region, emphasis should be given towards capacity building, accreditation and professionalization of this industry. Consistent enforcement and reliable detection technologies that builds and maintains public trust, awareness and participation. Increasing detection capabilities through sensory equipment as well as complementing periodic inspections with roadside testing are worthwhile investments for the region s I/M programs to be felt by the public. Complementing policies on vehicles that enter and exit the active fleet. Extension or end-oflife policies for vehicles must also be accompanied by studies on the fates of retired vehicles and scrapped parts, to prevent re-entry on the road once these are deemed unfit for continued use. Implementation of vehicle retirement and scrappage programs must be done with caution, as these policies may inadvertently cause pollution to be transferred from central urban economies to their peripheries.

5 abbreviations & units of measurement % v/v Percentage by volume 2W Two-wheeler vehicle 3W Three-wheeler vehicle ADB Asian Development Bank CAA Clean Air Asia CNG Compressed natural gas CO2 Carbon dioxide DOC Diesel oxidation catalyst HCV Heavy commercial vehicle HSU Hartridge Smoke Unit I/M Inspection and maintenance kg Kilogram LCV Light commercial vehicle LPG Liquefied petroleum gas m -1 MUV NO X PC PM 10 PM 2.5 ppm SO 2 1/ meter Multi-use vehicle Mono-nitrogen oxides Passenger car Particulate matter with diameter of 10µg/m3 or less Particulate matter with diameter of 2.5µg/m3 or less Parts per million Sulphur dioxide

6 CONTENTS contents 1. INTRODUCTION THE ROLE OF INSPECTION AND MAINTENANCE IN CLEAN AIR PROGRAMS STUDY OBJECTIVES, SCOPE AND METHODOLOGY 8 2. IN-USE MOTOR VEHICLE MANAGEMENT AND I/M IN-USE MOTOR VEHICLES AND I/M COMPONENTS OF INSPECTION AND MAINTENANCE PROGRAMS INSTITUTIONAL DESIGN OF MOTOR VEHICLE MANAGEMENT AND I/M INSTITUTIONAL DESIGN OF MOTOR VEHICLE MANAGEMENT IN ASIA CHALLENGES FOR I/M INSTITUTIONAL DESIGN IN ASIA FLEET CHARACTERISTICS OF IN-USE VEHICLES AND I/M FLEET CHARACTERISTICS OF IN-USE VEHICLES IN ASIA PERIODIC INSPECTION OF VEHICLES IN ASIA CONSIDERING FLEET CHARACTERISTICS IN I/M POLICIES IN ASIA MEASURING VEHICLE EMISSIONS IN ASIA VEHICLE EMISSIONS STANDARDS IN ASIA CHALLENGES IN EMISSIONS INSPECTION POLICIES IN ASIA TESTING AND REPAIR INFRASTRUCTURE FOR I/M PROGRAMS EMISSIONS TESTING INFRASTRUCTURE IN ASIA MAINTENANCE AND REPAIR INFRASTRUCTURE IN ASIA STATUS AND CHALLENGES IN I/M INFRASTRUCTURE IN ASIA ENFORCEMENT OF I/M PROGRAMS I/M PROGRAM ENFORCEMENT IN ASIA CHALLENGES IN I/M PROGRAM ENFORCEMENT IN ASIA SUPPORTING POLICIES ON NEW AND OLD VEHICLES POLICIES FOR VEHICLES ENTERING THE FLEET IN ASIA POLICIES FOR CLEANER VEHICLES & FUELS IN ASIA POLICIES FOR VEHICLES EXITING THE FLEET IN ASIA CONSIDERATIONS FOR SUPPORTING POLICIES ON VEHICLES WITH RESPECT TO I/M CONCLUSION 42 REFERENCES 43

7 LIst of figures Figure 1. Road Vehicle Management 9 Figure 2. Percentage of 2 & 3 wheelers in Asian Fleets 10 Figure 3. Components of Inspection/ Maintenance Programs 12 Figure 4. Challenges for I/M Institutional Design in Asia 17 Figure 5. Vehicle Population in Asia by Type 19 Figure 6. Vehicle Inspection Schedules by Type 21 Figure 7. Challenges for I/M and Fleet Characterization in Asia 23 Figure 8. Emissions standards for new vehicles in Asia 24 Figure 9. Challenges for I/M and Emissions Inspection Standards in Asia 28 Figure 10. Challenges for I/M Infrastructure in Asia 32 Figure 11. Challenges for I/M Enforcement and Detection in Asia 35 Figure 12. Sulphur Levels in Fuels across Asia 38 Figure 13. Challenges for I/M and Vehicle End-of-Life Policies in Asia 41 LIst of tables Table 1. Institutional design of motor vehicle management 15 Table 2. Costs associated with Inspection and Maintenance Programs 16 Table 3. Elements of Success for I/M Programs Institutional Design 17 Table 4. Elements of Success for I/M Programs Fleet Characterization 23 Table 5. Emissions Standards for In-Use Spark Ignition Engines 25 Table 6. Emissions Standards for In-Use Compression Ignition Engines 26 Table 7. Elements of Success for I/M Programs Emissions Inspection Policies & Standards 28 Table 8. Emissions Inspection Systems in Asia 30 Table 9. Vehicle Maintenance & Repair in Asia 31 Table 10. Elements of Success for I/M Programs Testing and Repair Centers Infrastructure 32 Table 11. Enforcement of Emissions Standards in Asia 34 Table 12. Elements of Success for I/M Programs Enforcement and Detection 35 Table 13. Policies on Vehicle Importation 37 Table 14. Policies Promoting Cleaner Vehicles and Reducing Motorized Transport 38 Table 15. Vehicles on Alternative Fuels 39 Table 16. Policies for Vehicles Exiting the Fleet 40 Table 17. Elements of Success for I/M Programs Policies on Vehicle End-of-Life 41

8 1. introduction Asia is home to nearly half a billion vehicles. Over the last decade, Asian countries have seen stellar growth in vehicle fleet sales particularly in highly urbanized areas in emerging economies. Combined with an aging vehicle population, motorized transportation is a major source of outdoor air pollution in the region. Six countries in this region are within the top 12 most populous nations, contributing to close to half of the world s population. Exposure to outdoor air pollution is a serious health concern. Diesel fumes can cause lung cancer as confirmed by the World Health Organization 1. Small particulates (PM 10 and PM 2.5 ) worsen asthma and other respiratory and cardiovascular diseases. A recent global report indicates that 3.2 million early deaths are attributed to outdoor air pollution and is the ninth leading cause of life years lost. In addition, increased vehicle use is a significant contributor to global energy demand and carbon dioxide (CO 2 ) emissions. Black carbon, a component of soot emitted from gasoline and diesel vehicles, contributes to global warming more than previously thought. While transport is an important component of economic development, it also contributes to a range of negative impacts including reduced productivity due to traffic congestion and road accidents. Governments have put regulatory measures in place to curb vehicle emissions and protect public health. A comprehensive strategy includes elements that are focused towards developing appropriate emissions standards for new and in-use vehicles, higher quality of fuel standards, more fuel efficient vehicle technologies, land-use planning and a well-designed inspection and maintenance system. 1.1 THE ROLE OF INSPECTION AND MAINTENANCE IN CLEAN AIR PROGRAMS Inspection and maintenance (I/M) is an inseparable part of the concept and implementation of cleaner fuels and vehicles. Through the monitoring and enforcement of vehicle operation and maintenance, I/M ensures that on-road vehicles maintain a high standard of performance, thus impacting fuel consumption, and air pollutant and CO2 emissions, as well as roadworthiness and driver behavior, and can be used as a fiscal tool to reduce or manage vehicle demand. Increased vehicle use and an aging vehicle population are responsible for up to 70% of air pollution in some cities in Asia. At an average growth rate of 11.5% new vehicles annually 2 and up to 44% of in-use vehicles above 5 years in some countries 3, transport emissions will continue to grow as a result of rapid motorization and urbanization across the continent. The most common cause of the excessive emissions of gaseous pollutants and particulates by road vehicles is the lack of regular periodic inspection and maintenance of the vehicle. Periodic service checks of a vehicle s engine performance as well as roadworthiness is necessary for maintaining engine and emission control system efficiency. Inspection and maintenance is a routine task performed on the vehicle to keep this operating at its designed optimum capacity and efficiency. In order to maintain their performance, all vehicles must undergo periodic service as recommended by the vehicle manufacturer. In general, new vehicles are exempted from undergoing inspection and maintenance for the first few years. However, after the first few years have passed, a vehicle inspection certificate becomes a prerequisite of registration renewal if I/M programs are in place. 1 WHO IARC IARC: Diesel Engine Exhaust Carcinogenic. Press Release No pdfs/pr213_e.pdf 2 Clean Air Asia Accessing Asia report. 3 Clean Air Asia VEHICLE INSPECTION & MAINTENANCE IN ASIA

9 Vehicles must show proof that the vehicle has been maintained and passed inspection by a certified inspector. While extremely important in improving the sustainability of on-road vehicles, the simple concept of inspecting and maintaining vehicles in their best-performing state has proven extremely complex in its implementation. Unfortunately, an inspection and maintenance policy measure is not a silver bullet solution to reduce air pollution and CO 2 emissions of in-use vehicles. of The implementation of other vehicle management approaches such as vehicle scrappage schemes, labeling schemes, taxation and insurance measures help reduce emissions from in-use vehicles. 1.2 STUDY OBJECTIVES, SCOPE AND METHODOLOGY This publication aims to provide an update on the current institutional framework, policies and practices on inspection and maintenance in twelve Asian countries and administrative regions, namely Bangladesh, People s Republic of China and Hong Kong Special Administrative Region, India, Indonesia, Malaysia, Nepal, Pakistan, Philippines, Singapore, Sri Lanka and Viet Nam. Inspection and maintenance policies are juxtaposed with respect to trends or patterns of in-use vehicle statistics in the region, data on existing I & M infrastructure and records of policy enforcement in order to identify gaps and issues in I/M program implementation. Supporting policies that affect the size and characteristic of in-use vehicle fleets, such as emission standards for new vehicles as well as retirement or scrappage policies, are also discussed. While roadworthiness and road safety are an integral part of inspection and maintenance systems, this report focuses on an in-depth analysis of emissions-based regulations. This assessment hopes to determine critical points of action towards curbing air pollution from mobile sources to serve as a pathway on how to make a proper system work in the Asian context. Lessons learned from I/M program implementation have been examined in numerous studies. Primary sources such as Walsh (2013) cite the experiences in cities such as Mexico and New Delhi among others, while a recent study from Fung and Suen for Civic Exchange (2013) review the I/M scheme for on-road vehicles in Hong Kong. For each aspect of I/M, the current status of systems found in the seven countries are presented in relation to identified elements of success in the previously mentioned studies. An overview of the components of inspection and maintenance programs will first be presented in Chapter 2, followed by the institutional design of in-use motor vehicle management in the selected Asian countries to provide context on governance in Chapter 3. General characteristics and trends of the vehicle population in Asia will be presented in Chapter 4, which will then be analyzed in relation to emissions-related policies in terms of emissions standards, inspection schedules and testing procedures (Chapter 5), the existing infrastructure and set-up of inspection centers and maintenance/ repair shops (Chapter 6), as well as institutional capacity for program enforcement (Chapter 7). Finally, a brief look on policies that influence the nature, volume and composition of in-use vehicles, such as importation of used vehicles, fiscal incentives and other market-based policies for alternative vehicles, accelerated vehicle retirement or scrappage will be presented in in Chapter 8, before summarizing critical points of action in the concluding Chapter. Information on emission standards, vehicle and I/M policies were obtained through online resources such as government websites, I/M studies and conference presentations given by local experts, and were summarized in individual policy profiles that accompany this report. VEHICLE INSPECTION & MAINTENANCE IN ASIA 8

10 2. in-use motor vehicle management and i/m Analyzing the status of inspection and maintenance programs for in-use vehicles necessitates an understanding of the overall management system for motor vehicles. This provides a comprehensive view of the circumstances in which vehicles enter, stay and leave the active fleet. General features of motor vehicle management include (Figure 1): policies and standards to guide the production, importation and sale of new vehicles, whether completely built-up (CBU) units or completely knocked-down (CKD) and locally assembled units; figure 1 road vehicle management policies and standards to guide the importation and sale of used or refurbished vehicles (if allowed at all), which may include those intended for use as public utility vehicles (such as buses) or for transport of goods; vehicle registration as a requirement for use, which covers new vehicles and those up for renewal, with inspections for emissions and safety as requirements depending on age of the vehicle; vehicles that are in actual use are subject to separate policies and standards for emissions and safety; in some countries, there are policies on forced obsolescence, vehicle retirement or scrappage programs based on vehicle age, total mileage or emissions/ safety performance ratings. 9 VEHICLE INSPECTION & MAINTENANCE IN ASIA

11 2.1 IN-USE MOTOR VEHICLES AND In-use vehicles are those that are currently in operation and are subject to regular inspection for compliance with emissions and safety standards. The in-use vehicle fleet does not include vehicles under the control of the manufacturer or dealer; these vehicles are subjected to a separate set of policies. Also excluded from the fleet of vehicles on the road would be those that are in the process of importation or trade, as well as vehicles that are no longer in operation, such as those that are subjected to forced obsolescence, retirement or scrappage programs. However, in estimating the number of in-use vehicles, both the increase due to newly-registered vehicles and the decrease due to vehicle retirement or scrappage should be considered. While statistics are readily available from vehicle registration, it is usually difficult to establish number of vehicles no longer in operation unless there is a closely monitored retirement/ scrappage program in place. This prevents having an accurate picture of the nature of in-use vehicles that should be subjected to I/M programs and greatly affects effective implementation, particularly since old vehicles would be significantly more pollutive than recently-acquired units and may be running on expired registration certificates. Of these classifications, vehicle make and the type of engine/ fuel used have the most impact on drafting emissions standards. Motorcycles, as well as three-wheeled vehicles using motorcycle engines are of great concern across Asia due to increasingly dominant percentage in the vehicle fleet nearly seven out of ten vehicles. Two-stroke engines specifically are highly pollutive and fuel inefficient, prompting phase-out policies and replacement or retirement programs across the region. Heavy duty vehicles running on diesel engines are also of great concern despite their small population compared to the over-all fleet due to their high fuel consumption and vehicle kilometers travelled (VKT). Diesel vehicles are considered significant contributors to particulate matter and black carbon. Figure 2 Percentage of 2 & 3 wheelers in Asian Fleets The scope of Inspection and Maintenance (I/M) programs are essentially all in-use road vehicles. These vehicles could be classified according to the following: a) vehicle type/ make (e.g. motorcycles, motorized three wheelers, light duty vehicles or heavy duty vehicles); b) engine types and fuel used (e.g. compression-ignition engines which use diesel fuel, position-ignition engines which use petrol/ CNG/ LPG fuels, and alternative engine technologies); c) vehicles either owned by private individuals or private corporations, government-owned vehicles, or public utility vehicles regardless of ownership or management; d) vehicles used to transport either people (passenger vehicles) or goods (delivery vehicles/ freight) by road. Based on statistics in Clean Air Asia Accessing Asia. VEHICLE INSPECTION & MAINTENANCE IN ASIA 10

12 2.2 COMPONENTS OF INSPECTION AND MAINTENANCE PROGRAMS The main goals of I/M programs are (1) to assure that in-use vehicles are properly maintained and used; (2) identify the dirtiest vehicles and get them repaired (address emissions); and (3) identify unsafe vehicles and get them repaired (address road accidents). 4 These programs typically consist of various components that consider the various aspects of in-use motor vehicle management (Figure 4): A. Institutional design of the I/M program. The success of an I/M program has been closely linked to how the system is designed, in terms of centralized or decentralized types of inspection, private or public testing centers, the presence of accreditation and audit systems, among others. B. Fleet characterization through vehicle registration statistics, fleet density per person or per road length, age of fleet. Fleet characterization and registration is the foundation of good inspection and maintenance program. The design, economics and impact assessment of an inspection and maintenance system needs good data on existing fleet, fuel type, age distribution, vehicle kilometers travelled (VKT). By knowing the number and type of vehicles and its characteristics, the system can be designed to the appropriate scale and customize fiscal measures to make the procedure financially viable for the operator. attention. This is especially true throughout the region as the service sector is very informal and usually lacks good training or equipment. E. Policies and institutional support for enforcement and detection technologies, increased public awareness and participation. Enforcement relates to checking vehicles for registration certificate, valid inspection and maintenance certificate, visual inspection for roadworthiness and/or measuring the actual emissions from vehicles on roads. An effectively enforced program would increase public trust and promote vehicle owner participation, while enforcement that is observed as inconsistent would be perceived as corrupt and unjust, ultimately jeopardizing the I/M program as a whole. F. Supporting policies on vehicles that enter and exit the active fleet. Loose policies on the importation of used or refurbished vehicles, engines and parts have an effect on emissions control and roadworthiness of vehicles. In addition, vehicles that can no longer be repaired to pass emission and safety standards should be retired, but end-of-life must be monitored to prevent reentry of vehicles on the road. C. Policies on periodic technical inspection, infrastructure for vehicle testing centers. Inspection and testing of vehicles is integral to the system. Inspection as such does not reduce emissions nor increase safety but it allows identification of polluting and unsafe vehicles and thus provides a link with maintenance. The key complexity of the system is how and what to measure, and how often these inspections should be. D. Policies and institutional support for vehicle maintenance and repair. While much attention is being paid to the inspection part of the system, it is the maintenance that actually reduces emissions. Very often, repair quality is weak and needs special 4 Walsh, VEHICLE INSPECTION & MAINTENANCE IN ASIA

13 figure 3 components of inspection/ maintenance programs VEHICLE INSPECTION & MAINTENANCE IN ASIA 12

14 3. institutional design of motor vehicle management and i/m The governance structure for over-all motor vehicle management would characteristically shape the nature and execution of inspection and maintenance programs. Inter-agency support and collaboration is crucial, and policymakers should assure that there is full dialogue with all appropriate ministries or departments at the early stages of program design, together with full agreement regarding specific roles and responsibilities. In establishing an inspection and maintenance policy framework, it is generally recommended that a national policy be instituted, and state and local governments should then tailor some program details within this framework to address specific conditions within regions or cities. In countries where responsibility is shared between national and local government organizations, coordination problems have been known to occur in the implementation of existing programs as well as in strengthening the system. This chapter summarizes information on general I/M program design; details for each country are provided in their respective policy profiles. 3.1 INSTITUTIONAL DESIGN OF MOTOR VEHICLE MANAGEMENT IN ASIA Table 1 provides a matrix of the various regulatory agencies involved in motor vehicles management and their effect on air quality. In most of the countries studied, motor vehicle management and inspection programs are coordinated by one or two agencies, under either the national transport or environmental ministries. In some countries, due to the federal system of government, such as India and Pakistan, or in geographically large countries like China and India, motor vehicle management is within the jurisdiction of each state or province. Centralized systems handled by a national coordinating agency are either proposed or in place in almost all the countries in this study, while in China, India and Pakistan, I/M programs are implemented at various levels under their respective regional, state or city governments, while adhering to federal or national guidelines on vehicle emissions standards and related policies. Across the region, regulation and institutionalized support for vehicle maintenance and repair shops is yet to be established, although in Hong Kong, training programs for vehicle repair mechanics have been supported by the government. Furthermore, there are still many challenges faced in effective and consistent program enforcement at the local level. These issues are further discussed in Chapter 6. In the countries included in this study, the funding system for audit and monitoring of testing centers are unclear - whether the costs are covered by the fee structure, are subsidized by public funds, or by other means. Not many studies have determined cost effectiveness of the inspection and maintenance program in Asia. There are many issues involved such as high inspection costs, testing methodology, frequency and effectiveness of testing and monitoring among others. Policy makers must give careful consideration to ensuring that resources (whether from inspection fees or from the general budget) are adequately set to keep a program running successfully. A fee structure should be set up such that the contractors are allowed to have profits and can have funding set aside for maintaining, replacing and upgrading equipment, so that in turn the inspection and maintenance system is less prone to fraud. Table 2 lists the costs that should be considered in I/M programs. Inspection and maintenance programs are inherently difficult to design and implement since these rely heavily on the participation and investment by private citizens or companies to safeguard a public good clean air. If executed under a voluntary framework, this would not be effective particularly since the vehicle owner is expected to pay for the test. If participation is mandatory such that compliance is necessary prior to the continued enjoyment of another public good the public road network this would entail consistent, fair and reasonable enforcement. 13 VEHICLE INSPECTION & MAINTENANCE IN ASIA

15 table 1 institutional design of motor vehicle management VEHICLE INSPECTION & MAINTENANCE IN ASIA 14

16 table 2 costs associated with Inspection and maintenance programs Cost Category Cost of finding failing vehicles Components of Cost Test or inspection cost (e.g., in inspection and maintenance lane, by remote sensor, or on-board diagnostic readout) Motorist cost including travel time and queuing time (for lane inspection) Resource cost of repair (if done at repair shop) Vehicle repair costs and associated fuel economy improvements Expenditures on parts and value of time (for self-repair) Cost of re-inspection Fuel economy savings Costs of program administration and oversight Costs of administering the program (aside from direct cost of testing) Enforcement costs Evaluation costs 3.2 CHALLENGES FOR I/M INSTITUTIONAL DESIGN IN ASIA Key features that contribute to the success of inspection and maintenance programs have been discussed in several studies over the past decade. This report adopts elements of success identified by Walsh (2013), citing experiences in Mexico City and New Delhi, as well as other I/M programs around the world (2005). Table 3 incorporates Walsh s findings with those of Fung and Suen in a 2013 study funded by Civic Exchange reviewing the Hong Kong experience. For the purposes of this report, these findings have been grouped based on the different components of I/M programs as discussed in the previous chapter; other essential factors for success on other aspects are subsequently presented in the next chapters. These identified elements of success are presented alongside a general picture of I/M institutional design in our focus countries presented as Figure 4. Centralized systems are considered to provide easier regulatory oversight, quality control and cheaper to manage compared to decentralized systems. In Asia, centralized I/M programs with testing centers under a monitoring/ audit scheme have yet to be fully realized, and follow-up studies can focus on identifying roadblocks to the adoption of this kind of scheme. Moreover, an in-depth appraisal of existing fee structures and how these can support testing center audits is recommended. 15 VEHICLE INSPECTION & MAINTENANCE IN ASIA

17 table 3 elements of success for i/m programs institutional design Obtain inter-agency support by initiating full dialogue with all appropriate government agencies at the early stage of design. Important to solicit support from senior decision makers and gain institutional capacity to manage. Provides assurance that all key stakeholders agree with their respective roles Gives a sense of ownership of the program. Coordination and consistency is crucial as other components of motorized vehicle management are localized Centralized testing programs with high through-put, test-only lanes have higher success rates than decentralized ones. Policy framework and overall management of I/M program provided by government, while private contractors perform the actual inspections Allows for easier facility oversight by the government: the set-up allows for optimized quality control Program can be supported by a legal framework to favor sanctions. Potentially lowers the cost per test if a large number of vehicles are tested in each facility Centralized systems have proven to be most cost effective and cheapest to manage Decentralized shops are expensive due to loss from economies of scale Program can be designed for profitability, allowing for investing in competent staff, testing equipment maintenance and upgrade Ensure sufficient funding is available to address all costs of the program. Allocate adequate funding and resources to prevent corruption and poor quality control Develop an adequate fee structure in which affected vehicle owners pay the full cost of I/M programs Set test fees at a reasonable level that will allow for sufficient profit margin to maintain testing centers. Include the costs for audit and oversight, road-side testing, and others, into the fee structure. Oversight and quality assurance should be integrated into the system. Develop performance standards for I/M testing centers and penalize poorly performing stations. Deters frauds, establishes credibility and leads to effectiveness of the I/M systems. A guarantee of the quality of the I/M program is crucial in obtaining public support. Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) figure 4 challenges for i/m institutional design in asia VEHICLE INSPECTION & MAINTENANCE IN ASIA 16

18 4. fleet characteristic of in-use vehicles and i/m Designing a good inspection and maintenance program is starts with a comprehensive picture of the composition of vehicles on the road. This would include what kind of vehicles dominate the fleet, the type of ownership and transport activities that are involved, the type of engine and fuel used, age distribution of in-use vehicles, and the extent of travel done. Based on ample data on the fleet, the I/M system can be designed appropriately to ensure that the program indeed addresses the primary source of vehicular emissions. Furthermore, vehicle data, activity, age and fuel information with testing results may be used to gauge the impact of inspection and maintenance system on emissions (air pollution and CO2), fuel consumption and traffic safety. Fleet characterization is only as good as the existing vehicle registration system. An ideal set-up would be for vehicle emissions data to be automatically entered into a centralized database which can be accessed by regulators granting registration or renewal certificates; in which case compliance to in-use vehicle emissions and safety standards would both be prerequisites. Raw data on vehicle registration available online from in motor/ transport agency websites were further processed and grouped based on the following vehicle classifications 5 : A. Two-wheeler (2W): a two-wheeled motor vehicle not exceeding 400 kg of unladen weight; includes those with cylinder capacity of 500 cc or greater B. Three-wheeler (3W): a three-wheeled motor vehicle; includes those designed by manufacturers as well as 2-wheelers with extended chassis for greater passenger capacity C. Passenger car (PC): generally, 4-wheelers intended to carry passengers with a maximum seating capacity of nine persons; includes vans, motor homes and taxis D. Multi-utility vehicle (MUV): designed to carry passengers or goods unladen weight kg E. Bus: designed to carry up to 60 passengers; can be designed to accommodate standing passengers. F. Light commercial vehicle (LCV): designed exclusively or primarily to carry goods (including vans, pick-ups and small trucks), with gross vehicle weight of not more than 3,500 kg. G. Heavy commercial vehicle (HCV): designed exclusively or primarily to carry goods, with a gross vehicle weight of more than 3,500 kg FLEET CHARACTERISTICS OF IN-USE VEHICLES IN ASIA There are currently around 500 million vehicles in Asia. This estimate is based on vehicle registration data from the previous year based on records from the Asian countries included in this study. This number is projected to increase to around 380 million by Majority of vehicles in Asia are registered in China and India, accounting for 60% of the vehicles in the region, however the highest motorization annual growth rates are seen in Lao PDR, Viet Nam and Nepal ( Figure 5) 6. In some instances, this increased motorization is not necessarily in step with population growth rates, as in the case of Nepal with fleet growth rate 11 times more than its population growth rate. Sri Lanka, on the other hand, has a vehicle population growth rate nearly equal to its population increase. Two-wheelers are the dominant vehicle type in most Asian countries, most notably in Viet Nam in which they comprise 96% of the fleet in Preference for two-wheelers may be linked to flexibility of use in both urban and mountainous 5 Definitions adopted from Accessing Asia by Clean Air Asia (2012). 6 Statistics and figure adapted from Accessing Asia by Clean Air Asia (2012). 17 VEHICLE INSPECTION & MAINTENANCE IN ASIA

19 terrain, as well as providing a convenient mode of personal transport that can be purchased at a lower cost compared to automobiles and are deemed easier to maintain. Two-wheelers however pose issues for road safety, and those running on two-stroke engines are grossly pollutive and fuelinefficient. Two-wheelers, by their sheer number and the persistence of outmoded engines, pose a significant challenge for I/M programs. Passenger cars rank second in dominance for the total Asian fleet. In Malaysia, nearly half of the fleet is composed of passenger cars. Shift from motorcycle to automobile ownership may start to be felt once cities reach a certain average percapita GDP 7. combined with attractive auto loan packages. This may be a factor in increased traffic congestion felt in cities such as Metro Manila and Jakarta. Despite the significant vehicle numbers for twowheelers and passenger cars, these two vehicle types are used for shorter trips and log in the least vehicle kilometers travelled (VKT). In contrast, heavy commercial vehicles (used for freight delivery by road) running on diesel engines travel the longest distances, with an average of nearly 43,000 km per year, and are more significant contributors of emissions 8. While there is now push for green freight, a strong vehicle inspection & maintenance program that addresses pollution from trucks and lorries should be given priority. figure 5 vehicle population in asia by type 7 International Transport Forum Low-carbon mobility for Mega Cities. 8 Statistics from Accessing Asia by Clean Air Asia (2012). VEHICLE INSPECTION & MAINTENANCE IN ASIA 18

20 4.2 PERIODIC INSPECTION OF VEHICLES IN ASIA Periodic inspections for in-use vehicles generally fall under two objectives: (a) to assess if vehicles comply with tailpipe emission standards, and (b) determine if these conform to roadworthiness and safety guidelines. Of these, inspections for roadworthiness are more institutionalized across the region as prerequisites for vehicle registration or renewal. Assessment is done usually through visual inspection and does not involve quantitative parameters and technical equipment. In contrast, inspection for compliance with in-use tailpipe emission standards is not necessarily a requirement under periodic license renewal for on-road vehicle use, although it may limit access to certain areas or cities which have labelling or air-quality zoning schemes. As discussed in Chapter 3, not all I/M programs have centralized implementation and thus would depend on registration, regulation and enforcement systems at the state or city level. Figure 6 provides a matrix of current periodic inspections for in-use vehicles per type. In most countries in Asia, new vehicles are exempted from undergoing inspection and maintenance for the first few years. Prescribed frequencies of inspection for emissions and roadworthiness are generally for all vehicle types, although for several countries there is some differentiation between old and new vehicles, as well as high mileage passenger cars (i.e. taxis). the volume of vehicles in the locality. If there are too many vehicles but not enough testing centers, staff or equipment, participation in the inspection program will diminish and may even discourage motorists to take subsequent I/M campaigns seriously. For instance, in China, the previous schedule of biennial inspections even for new vehicles was reassessed such that the first mandatory inspection is now for vehicles at least 6 years old. Two-wheelers, while comprising nearly 70% of in-use vehicles, register the lowest annual usage values in Asia at 7,500 vehicle kilometers travelled. 9 Thus despite their large number, one pollutive two-wheeler may not be a significant contributor to air pollution; however, by requiring the same frequency of inspection, significant time and resources may be spent by identifying polluters that travel for only short distances. Campaigns for increased willingness towards inspection and investment in vehicle maintenance can be designed to engage the public transport and delivery sector given the predominance of diesel-run vehicles and high annual VKT values of three-wheelers, buses and HCVs. It is unclear if there are intentions to vary the periodicity of tests from being based on type of ownership (whether owned by an individual or by a public transport/ delivery company) to usage based on annual vehicle kilometers travelled. In considering uniform versus differentiated schedules for inspection for various vehicles, modes of ownership and frequency of use may be overlooked factors that inadvertently affect the effectiveness of I/M programs. It is also necessary to assess whether testing centers have the logistical and technical capacity to accommodate vehicles for thorough emissions inspection given the prescribed periodicities and 9 Statistics from Accessing Asia by Clean Air Asia (2012). 19 VEHICLE INSPECTION & MAINTENANCE IN ASIA

21 figure 6 vehicle inspection schedules by type VEHICLE INSPECTION & MAINTENANCE IN ASIA 20

22 4.3 CONSIDERING FLEET CHARACTERISTICS IN I/M POLICIES IN ASIA Knowing the nature of the fleet is vital to developing an effective inspection and maintenance scheme for in-use vehicles. Understanding the composition of the fleet in relation to the dominant fuels used by vehicles on the road would allow for designing inspection and maintenance programs that address vehicles that are in most need of regular testing and tune-ups. It is recommended that in-use vehicle emission standards should be based on fleet characterization, as well as air quality statistics on the distribution of emission levels. I/M programs in Asia would benefit greatly if, going beyond established standards based on vehicle make and engine types, policies for periodic testing would also consider fleet composition, vehicle population sizes, modes of ownership and vehicle usage patterns. For instance, considering patterns of ownership may provide guidance for sector-based information/ education campaigns to increase willingness towards inspection, as well as a more directed approach to transport and delivery companies for maintenance of their respective fleets. The testing and repair industries can be encouraged to improve their market reach by either specializing or diversifying their services to increased access and convenience for different types of vehicle owners. The complex nature of in-use vehicular transport would ideally be matched by inspection policies that reflect and address this diversity. Low participation may be symptomatic of periodic test schedules that may not be realistic, or of testing centers with limited capacity to regularly accommodate a high volume of vehicles. Inspections are generally recommended to be between six months to two years is a reasonable range for periodic inspections; anything more frequent may be deemed too inconvenient, while schedules that are beyond a biennial schedule may miss out on identifying vehicles in need of maintenance or retirement. A crucial element for effective I/M programs would be a vehicle registration and renewal system that is closely linked to results of tailpipe emissions tests, ideally recorded in real time and accessible through an online database, such as in the case of Sri Lanka. This type database infrastructure would allow for institutionalizing inspection and maintenance compliance as a requirement for operating a vehicle. This must be coupled with a periodic registration scheme that is likewise effectively enforced. Table 4 summarizes elements of success related to fleet characterization and vehicle registration. In Asia, motorcycles are the preferred mode of private personal transport: seven in ten vehicles are two-wheelers, and yet there are no specific inspection schedules for private two-wheelers in some countries. The dominance of two-wheelers in the fleet should always be considered when designing inspection and maintenance programs, formulating or updating in-use emission standards and determining the periodicity of tests which are usually drafted with passenger cars in mind. Testing centers equipment, floor layout and technical staff should efficiently accommodate the high population of two-wheelers. This is particularly crucial in Viet Nam, Indonesia, India, Sri Lanka and Nepal. On the other hand, the growth rate for passenger cars is still significant, with more households reaching income levels that allow them to purchase automobiles. Three-wheeler vehicle numbers are also on the rise. In Sri Lanka, the existing vehicles emission testing program is currently able to reach 90% of the vehicle population; with this efficient reach the program may be in a good position to study the drivers of three-wheeler population growth and develop the appropriate expertise and equipment to adjust to this trend. Another crucial sub-group would be delivery goods vehicles that run on diesel engines and log in high vehicle kilometers travelled. Hence initiatives towards greening of the freight, as seen in China, Hong Kong and Singapore, together with I/M programs targeted for delivery vehicles may have the highest impact on reducing vehicular emissions. Figure 7 summarizes the status of I/M with regards to fleet characterization in Asia. 21 VEHICLE INSPECTION & MAINTENANCE IN ASIA

23 table 4 elements of success for i/m programs fleet characterization Proper fleet characterization is essential to guide policy and standards An accurate representation of the fleet composition will guide the formulation of realizable standards and feasible I/M implementation. Fleet characterization is based on data on vehicle population, road density, vehicle make and age distribution, as well as types of fuel used. Vehicle registration, fleet characterization and I/M should be integrated into one database Link I/M with registration data so that failure to present proof of inspection leads to denial of registration. This induces owners to send vehicles for inspection. Allows for systematic analysis of data for identifying weak points in the I/M program towards improvement. Include a detailed data management system to enable transmission of all real-time test data as generated Minimizes chances of falsifying data if testing device automatically inputs and transmits data to the database Allows oversight agencies to collect data for enhancing enforcement programs Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) figure 7 challenges for i/m and fleet characterization in asia VEHICLE INSPECTION & MAINTENANCE IN ASIA 22

24 5. measuring vehicle emissions in asia The key complexity of drafting emissions inspection policies is how and what to measure what constitutes a pollutive vehicle, considering different makes, engine capacities, fuel types and usage frequencies. Factors such as the function of the vehicle as well as the mode of ownership and accountability for vehicle use, also are to be considered in determining prescribed schedules or regularity of inspection. This chapter gives an overview of emissions policies, test procedures and tailpipe emission standards for new and in-use vehicles in Asia. 5.1 VEHICLE EMISSIONS STANDARDS IN ASIA Current emission standards for new vehicles range from Euro 2 to Euro 6 across the region (Figure 8), with the most stringent standards implemented at the city level in Beijing, China. Singapore and Hong Kong adopting Euro V standards for diesel vehicles in recent years. This should be complemented by gradual tightening of in-use vehicle emission standards. figure 8 emissions standards for new light vehicles in asia Tailpipe emission test methods for spark-ignition and compression-ignition engines in Asia are provided in Table 5 and Table 6 For spark-ignition engines, emissions tests are conducted at idle speed with no load; high idle speeds or lambda tests are not a standard across the region. Most tailpipe emissions standards historically started with measuring carbon monoxide levels (as % by volume), and have included hydrocarbon measurements in the past decade. For compression-ignition engines, smoke opacity tests are usually done under free acceleration, with standards differentiated for turbo-charged or naturally aspirated engines in some countries. Emissions standards are uniform for all types of diesel vehicles regardless of engine capacity, frequency of use or cumulative distance travelled. Most countries provide specific standards for two-wheelers and three-wheelers, as well as twostroke engines although the latter vehicles have been subject to phase-out programs in various cities. There are also some standards for vehicles running on compressed natural gas or liquefied petroleum gas. 23 VEHICLE INSPECTION & MAINTENANCE IN ASIA

25 table 5 emissions standards for in-use spark ignition engines table 6 emissions standards for in-use compression ignition engines VEHICLE INSPECTION & MAINTENANCE IN ASIA 24

26 While national compiled data on emission failure rates are scarce, there have been some statistical studies on emission inspection failure rates, the findings of which are detailed in their respective country profiles. Two- and three-wheelers and diesel vehicles were identified as top polluters in Sri Lanka according to a study from More recent statistics (2010) culled from their Vehicle Emission Test database showed an average fleet failure rate of 17% at the first test. Vans, diesel tempos and trucks were heavy emitters in Nepal, but these statistics also need updating. Even in Singapore, which has a very high passing rate of nearly 92% for all its vehicles, lower passing rates are exhibited by goods delivery vehicles 10. Analysis of failure rates can also be used to evaluate the appropriateness and attainability of prescribed emission standards. Failure rates that are too low may be telling of lenient emission limits, while high failure rates may be indicative of a standard that is unrealistic given the current fleet. A study published this year on in-use vehicle I/M programs in India 11 included data analysis from testing centers in Delhi and Bangalore, India, which showed that failure rates vary based on vehicle make and their classifications against Bharat-stage emission standards corresponding to vehicle age. For older passenger cars and buses, failure rates are marginally higher; the reverse was observed however for spark-ignition two- and threewheelers, as well as three- and four-wheeled diesel vehicles. This may be indicative of stricter norms that may be difficult to attain. Furthermore, violations for exceeding carbon monoxide norms are four times greater than those for exceeding hydrocarbon limits, thus a closer look is necessary if carbon monoxide limits are relatively too low compared to the rest of the region, or if hydrocarbon limits are too lax. 5.2 CHALLENGES IN EMISSIONS INSPECTION POLICIES IN ASIA I/M programs carried out in a phased approach that allows learning, adaptation, flexibility and capacity building along the way tend to have better chances of success. For the Indian experience, it was observed that the introduction of HC measurements as well as inclusion of lambda tests may have been difficult for pollution under control (PUC) centers that needed upgrades in their facilities 12. In adopting of more stringent standards, the technical and logistical readiness of test centers would need to be considered. Elements of success for emissions inspection policies are enumerated in Table 7. Note that no-load and idle test methods for spark-ignition engines, which are the norm, are considered fast, cheap and easy to perform but fail to sufficiently detect pollutive vehicles with converters. This test method also excludes NOx measurements and generates false passes. For compression-ignition engines, free acceleration is the method of choice in the region but this is acknowledged to have a low level of consistency and affected by contingent conditions: this may lead test centers to develop reputations of having a low failure rate to generate more business. Emissions tests, aside from evaluating the performance of a vehicle, are also indicative of the effectiveness of policies under which these tests are conducted. On the other hand, high failure rates may be indicative of stringent standards that may not be reflective of locally existing vehicle or engine technology, in which case a system that fails too many vehicles would be at risk of eroding the willingness of vehicle owners to participate. Initial standards that fail only the worst 15 to 25% of the vehicle fleet are recommended; these standards are gradually tightened in conformity with new vehicle emission standards, and coordinated with the test and repair industries such that facilities are given ample time to upgrade equipment and train personnel. 10 Singapore Land Transport Authority Statistics in Brief. 11 Lakshmi CS et al Establishing a national in-use vehicle testing programme in India. Shakti Sustainable Energy Foundation Society of Indian Automobile Manufactures Technical Regulations: Lambda Measurement. scripts/lambdameasurement.aspx 25 VEHICLE INSPECTION & MAINTENANCE IN ASIA

27 table 7 elements of success for i/m programs emissions inspection policies & standards Assess the appropriateness and timeliness of policies and standards against vehicle fleet characteristics. Tighten in-use emission standards for new vehicles in tandem with adoption of more stringent new vehicle standards, towards continuous improvement of I/M program. Assure frequency of inspections varies for vehicles with differing mileage accumulation rates and with more or less durable emission control systems. Ensure that high mileage/ usage commercial vehicles, like taxis, are adequately and properly maintained. Test procedures should be appropriate to emissions standards & sufficiently match vehicle technology of the fleet. No-load or idle tests are the fastest, cheapest and easiest to perform and can identify faulty vehicles without converters. However, they detect only about 15% of high-emitting vehicles with converters. NOx and transient emissions are also not possible to measure. False passes are also easy to generate with this type of test; this can be reduced by using dynamometers and NOx testing (such as those in Santiago, Chile used for urban diesel buses) Use loaded testing for electronically controlled vehicles: this enables more effective identification of high emitting vehicles, and lower chance of false pass/ false failure. Steady-state and transient loaded tests allow for measurement of NOx and can identify most if not all high polluters. These are more expensive test methods but offer potential emissions reductions of about 15-20%. Short, loaded-mode, constant-speed tests are easy to operate at reasonable investment and cost. Free acceleration test procedures still need improvement, have low consistency across various testing centers, are dependent on how the accelerator pedal is pressed, and are not effective on recent technology vehicles. Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) figure 9 challenges for i/m and emissions inspection standards in asia VEHICLE INSPECTION & MAINTENANCE IN ASIA 26

28 6. testing and repair infrstructure for i/m programs Testing and repair of vehicles is integral to I/M programs. By itself, inspection as such does not reduce emissions nor increase safety but it allows identification of polluting and unsafe vehicles. Results of these inspections should then be actionable by linking it with vehicle registration (as discussed in the previous chapters) but more importantly induce vehicle owners towards proper maintenance. The testing can be done either in small number of centralized or test-only facilities or a relatively large number decentralized or test-and-repair facilities, however the latter set-up is not advisable as this would pose a conflict of interest and affect the perceived integrity of a facility, which would erode trust and subsequently discourage participation in the I/M program. 6.1 EMISSIONS TESTING INFRASTRUCTURE IN ASIA Centralized I/M systems handled by a national coordinating agency are found in most countries in Asia, however vehicle registration databases are not linked to emissions test results. At present, the Vehicle Emission Testing (VET) program in Sri Lanka may be considered unique in that it is a centralized system coordinated by the Air Resources Management Center, with emissions testing outsourced to two private companies subjected to accreditation and audit, and test results integrated with a centralized vehicle registration/ renewal database. Emissions inspection services are outsourced to private companies in most countries. For instance, in the Philippines, there are numerous testing centers managed by various companies; a list of pollution testing centers and addresses/ locations and other information are accessible online. In the case of Sri Lanka, there are currently 263 testing centers under either one of the two authorized companies, with locations and maps provided in their respective websites. Some of these are designed as mobile testing centers. Limiting the management of test centers to one or three private companies would allow for easier oversight, as also is the case in Malaysia and Singapore. There was limited data gathered on the funding system for audit and monitoring of testing centers, whether the costs are covered by the fee structure, are subsidized by public funds, or by other means. Various issues still abound with respect establishing inspection facilities such as contracting issues with government and privately run centers, integrity of the tests particularly calibration, tampering, and maintenance of equipment and extensive reports of corruption in testing (e.g. no appearance testing). Thus an audit system of testing centers is imperative. An overview of the emissions testing infrastructure is provided in Table 8 Other emissions testing centers are state-operated, (e.g. in China, these are mostly operated by the local police departments), this however might limit their reach and managed under government funding. 27 VEHICLE INSPECTION & MAINTENANCE IN ASIA

29 tabl e 8 emissions inspection systems in asia 6.2 MAINTENANCE AND REPAIR INFRASTRUCTURE IN ASIA Across the region, regulation and institutionalized support for vehicle maintenance and repair shops is yet to be established. Hence, there is no regulatory system that receives vehicles that fail emissions tests and addressed the sources of emissions. Very often, vehicle repair quality is weak and needs special attention, since the repair and service sector is very informal and usually lacks good training or equipment. An overview of maintenance and repair infrastructure is provided in Table 9. numerous informal repair centers, as in the case for the rest of Asia. There have also been proposals to outsource inspection duties to repair shops, however most studies on I/M have strongly advised against this as this would present a conflict of interest for the repair shop owner and may lead to false positives in which intentionally failed vehicles will feed the maintenance/ repair aspect of the business. There are proposals for professionalization, accreditation and audit of maintenance and repair shops. Hong Kong has institutionalized training programs for vehicle repair mechanics, initiated by the Environmental Protection Department and the Vocational Training Council. In Sri Lanka, a certification process is proposed to categorize or rank these facilities based on the facilities technical capacity to repair units that fail under the VET program 13. In the case of India, there are guidelines listed under the Central Motor Vehicles Rules; maintenance centers are usually linked to vehicle manufacturers or dealers and are covered by their respective audit systems. There are however 13 Clean Air Country Network Sri Lanka Clean Air in Sri Lanka: Summary of progress on improving air quality. VEHICLE INSPECTION & MAINTENANCE IN ASIA 28

30 Table 9 vehicle Maintenance & Repair in Asia 6.3. STATUS AND CHALLENGES IN I/M INFRASTRUCTURE IN ASIA Well-established, professionalized and accredited facilities for emissions testing and vehicle repair provide the necessary backbone for successful I/M programs. It is therefore necessary for these service industries to be constantly involved and engaged by policy makers in drafting or updating periodic testing policies and emissions standards. Considerations for I/M infrastructure are summarized in Table 10. In Asia, there is still a significant gap for vehicle diagnostics and repair technology and technical know-how to be able to meet the increasingly stringent emission standards. This presents plenty of entry points for capacity-building programs towards equipping the service industry to address the upkeep of a rapidly growing fleet (Figure 10). figure 10 challenges for i/m infrastructure in asia 29 VEHICLE INSPECTION & MAINTENANCE IN ASIA

31 table 10 elements of success for i/m programs testing and repair centers infrastructure Organizational structure of inspection centers should be conducive to objective, high quality tests. There should be well defined criteria for authorizing, registering and auditing testing centers. Centers must be resistant to tampering and cheating. There should be high retention of trained personnel. Tests should be easy to perform and must be cost effective. Tests should not give false positives (should not cause clean vehicles to be repaired) and false negatives (must not allow dirty vehicles to pass). Develop performance standards for I/M and penalize poorly performing stations Maintenance and repair centers should be separate and independent from testing centers. While combined test and repair centers are very convenient for vehicle owners, having test-only facilities reduces the conflict of interest, as failing a vehicle is potential business for repair. Test-and-repair facilities are difficult to control and audit, reducing reliability and eroding trust from the public. Close coordination between I/M policies and support institutions/ infrastructure Ensure service industry has sufficient equipment and knowhow to properly repair vehicles. Technicians need to know the basics of emission controls, engine operations, etc. Increase training of technicians to repair with a goal to reduce emissions. Give sufficient lead time to allow the service industry to equip itself to repair failing vehicles when tightening I/M requirements Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) VEHICLE INSPECTION & MAINTENANCE IN ASIA 30

32 7. enforcement of i/m programs A nationwide, compulsory, periodic inspections regulation would necessitate a sizable workforce for effective enforcement. The extent of the program s intended reach should consider the manpower requirement such that there is a visibility of implementation, most especially at the beginning stages. The need to develop citizens confidence on the system early on cannot be overstated, particularly if fines and penalties will be imposed on violators. A key element of a successful inspection and maintenance program that is frequently neglected in program design is how to enforce the case against corrupt entities, especially inspectors. Checks and balances should be embedded in the system. Policymakers must give careful attention and thought to what constitute appropriate sanctions so as to assure that a workable system is in place to gain public trust. 7.1 I/M PROGRAM ENFORCEMENT IN ASIA Statistics on the number of violations are difficult to come by, however recent estimates from New Delhi reveal there are about 75% to 90% of vehicles that operate without pollution under control or PUC certificates 14. With nearly all vehicles able to enjoy the use of public roads despite foregoing the requisite emissions inspection, it seems that I/M programs are hardly felt, and it is reasonable to assume that this is the case in most cities across the region. Enforcement duties vary for each country, but essentially are done with the assistance of local police. In some countries, citizens are engaged to report smoke emitting vehicles (Singapore), or by providing hotlines for SMS reporting (Manila). Given the number of vehicles on the road compared to local traffic police, it would be difficult to identify violators just by manual visual surveillance. Roadside testing and the use of detection technologies would be necessary for true implementation for emissions abatement, and these have been done in occasionally in cities such as Beijing and Jakarta. Table 11 provides an overview of the enforcement infrastructure for I/M in the region. table 11 enforcement of emissions standards in asia 14 News article from The Times of India, dated April VEHICLE INSPECTION & MAINTENANCE IN ASIA

33 7.2 CHALLENGES IN I/M PROGRAM ENFORCEMENT IN ASIA There are still many challenges faced in effective and consistent enforcement of I/M policies in the region, particularly if the system is reliant on enforcement by an overstretched police force who are also tasked to fulfill other traffic management duties. Therefore, improved emissions detection technologies and the use of roadside testing are worthy investments that can complement scheduled/ periodic testing at stationary centers. The limited manpower of traffic police can further be augmented with public awareness campaigns and participation through citizen monitoring and reporting of pollution-emitting vehicles. Engaging citizens to assert their right to clean air, encouraging consumers to choose cleaner vehicles and transport, and enjoining vehicle owners to meet their responsibilities of maintaining their vehicles and other information and education campaigns should be considered as integral parts of I/M programs. Public transport companies with vehicles that undergo regular vehicle inspection and maintenance can be given recognition. Table 12 lists other recommendations for effective enforcement and detection, and key challenges for the region are recapitulated in Figure 11. table 12 elements of success for i/m programs enforcement and detection Increase capability to detect emissions via remote sensing. Complement I/M with roadside testing or remote sensing, to catch gross emitters that use temporary fixes to pass I/M requirements Remote sensing can measure various emissions, measure speed/ acceleration, can test high volume of vehicles per hour, can document license plates Relatively cheap with respect to high complementation of I/M enforcement. Locations to set up devices should be appropriate for testing conditions (single lanes or areas with slight acceleration) and discrete. Reduces human bias from visual detection of smoke emitting vehicles, prone to subjectivity and corruption. Engage public participation. Raise public awareness of health benefits that can result from a successful I/M program, to ensure public acceptance and encourage participation, via information, education, communication campaigns. Mobile phone and SMS reporting via hotlines (done in Bangkok, Manila and New Zealand) Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) figure 11 challenges for i/m enforcement and detection in asia VEHICLE INSPECTION & MAINTENANCE IN ASIA 32

34 8. supporting policies on new and old vehicles In managing emissions from in-use motor vehicles, policies on vehicles that will be entering the fleet, as well as policies for vehicles deemed unfit for continued use will ultimately affect the execution of inspection and maintenance programs. Much attention has been given to improving emissions standards for new vehicles, however more stringent criteria in developed countries have pushed vehicles towards obsolescence in these countries. Since these vehicles still meet standards in developing countries, there is essentially a movement of old albeit still functional vehicles from emissions-stringent regions to lenient ones be it through trans-boundary of trade of used vehicles through importation, or migration from cities to rural areas. End-of-life policies such as vehicle retirement and scrappage programs, if in place, should include certification systems and a thorough examination of the fates of these vehicles to ensure that there is no re-entry of obsolete vehicles and used engines or parts into the active fleet. 8.1 POLICIES FOR VEHICLES ENTERING THE FLEET IN ASIA Table 13 lists policies of vehicle importation across the 12 countries. A closer look is necessary for importation policies of used vehicles into the region, such as the use of vehicle age caps. While these vehicles should theoretically be able to conform to existing emissions standards, certification and inspection procedures are unclear for most countries, whether these are to be done prior to shipment from the source country, or upon arrival to the destination country. retired even before these reach 10 years. However, eventual disposal of these vehicles then becomes the burden of the receiving country, which may not have the capacity to address this. Recycling industry for vehicles in the region are being developed or strengthened in some countries such as China, India and Malaysia. The conditions for heavy commercial vehicles may be considered generally less stringent compared to passenger cars and other light duty vehicles for personal use. Importation of used buses and HCVs is generally allowed countries that do not have their own manufacturing industry for buses, trucks and heavy diesel construction equipment. This poses a serious concern since used HCVs have already logged in considerable mileage and may be major sources of particulate matter and black carbon, and the movement of these vehicles may unintentionally transfer the potential for pollution from one country to another. Used passenger cars from developed countries that are still compliant with relatively good emissions standards in the receiving country may actually provide a financially viable transitory option for some developing nations. Singapore for instance has provisions for exporting slightly used cars, given that vehicles are encouraged to be 33 VEHICLE INSPECTION & MAINTENANCE IN ASIA

35 table 13 policies on vehicle importation 8.2 POLICIES FOR CLEANER VEHICLES & FUELS IN ASIA Cleaner fuels lead to less pollutive emissions and extends engine performance. Figure 12 shows that leaded petrol has been phased out in the region for at least a decade, and that sulfur content in petrol and diesel fuels are going lower, with ultra-low sulfur diesel available in Hong Kong. There are many cities that have adopted more stringent fuel quality standards (10-50 ppm sulfur) in China, India, Singapore and Hong Kong. Low sulfur fuel is also now available in Malaysia and the Philippines. Sulfur content in fuels, however, remains high in some countries such as Pakistan, Indonesia and Sri Lanka. run on diesel, with at least 80% of multi-use vehicles and 90% of buses. Diesel vehicles remain a priority issue in air quality since these are the primary sources of particulate matter and black carbon, which are linked to respiratory and cardiovascular illnesses. Black carbon has also been acknowledged as greenhouse gas and a significant contributor to increased global atmospheric temperatures. Hence it is imperative to have regular emissions inspection of diesel vehicles with high mileage such as those used in public transport and delivery of goods. There is a serious push towards cleaner alternative fuels and vehicles across Asia. Numerous marketbased incentives are available such as differential taxes for alternative vehicles, coupled with fiscal disincentives for older vehicles. Table 14 lists some policies and programs that promote cleaner vehicles in the 12 countries, as well as reduced motorization. Programs include identifying low emissions zones in tandem with vehicle labelling schemes. Singapore and cities in China limit vehicle ownership or registration through license lotteries. Nearly all public transport vehicles in the region VEHICLE INSPECTION & MAINTENANCE IN ASIA 34

36 figure 12 sulphur levels in fuels across asia table 14 policies promoting cleaner vehicles and reducing motorized transport 35 VEHICLE INSPECTION & MAINTENANCE IN ASIA

37 t able 15 vehicles on alternative fuels There has been a significant shift in the region towards the use of compressed natural gas (CNG) as a fuel alternative. Pakistan has one of the highest number of vehicles running on compressed natural gas, and other countries have programs promoting the shift to CNG and LPG fueled public transport. The bulk of these vehicles are for passenger cars, with as much as 86 to 90% of these vehicles running on CNG in Pakistan and Bangladesh, respectively. There has also been substantial shifting to CNG for public use vehicles such as three wheelers, multi-use vehicles and buses, as seen in vehicle replacement programs in Chinese cities and Jakarta, although the majority of these vehicle types still run on diesel. The use of liquefied petroleum gas (LPG) or electrically powered vehicles have also been explored. There have been projects to promote these technologies for three-wheelers in response to the shift away from the use of 2-stroke engines, such as in Nepal, India and the Philippines. Significant numbers of electric/ hybrid vehicles are also seen in China, Singapore and Malaysia, whose automotive industry is positioning to be a major manufacturing hub for e-vehicles in the next decade 15. Some examples of shifts to alternativelyfueled vehicles are given in Table Malaysia s National Automotive Policy 2014 VEHICLE INSPECTION & MAINTENANCE IN ASIA 36

38 8.3 POLICIES FOR VEHICLES EXITING THE FLEET IN ASIA Policies that address vehicles at end-of-life stages also influence the effectiveness of inspection and maintenance programs. Some examples are listed in Table 16. Activities that extend the usable life of the vehicle, such as engine conversion and retrofitting, should be closely monitored such that replaced parts and 2-stroke engines do not re-enter the fleet through informal repair centers. Vehicle retirement and phase-out programs implemented only in specific areas may also be inadvertently transferring pollution from one area to another. This may be unavoidable in the implementation of step-wise, graduated tightening of in-use vehicle standards so therefore this should be coupled with support and capacity building for maintenance and repair in outlying areas that will potentially receive these older vehicles. China has implemented a nationwide scrappage program coupled with subsidies for purchase of new vehicles, initiated in 2009, and continued at the city level. In Singapore, scrappage is closely monitored by the Land Transport Authority the vehicle owner to present certification of scrappage (or disposal to accredited export processing zones) and is coupled with the vehicle de-registration process. A scrappage program is being proposed by some sectors in India and Sri Lanka, however this should be carefully studied as there are many underlying issues associated with this strategy, based on other countries experiences. Without a strong recycling industry and an accreditation program for scrapping facilities, a scrappage program might act as a feeder for informal resale of used vehicles and parts, locally or to other countries with weak enforcement capabilities. table 16 policies for vehicles exiting the fleet 37 VEHICLE INSPECTION & MAINTENANCE IN ASIA

39 8.4 CONSIDERATIONS FOR SUPPORTING POLICIES ON VEHICLES WITH RESPECT TO I/M Comprehensive management to reduce emissions from in-use vehicles involves coordination with agencies that are concerned with trans-boundary trade and movement of vehicles, as well as consideration of stakeholders that will be affected or engaged in end-of-life activities, such as the vehicle manufacture and recycling industries. Restriction of used vehicle importation as well as institutionalized retirement and scrappage programs would entail additional layers of policy study, accreditation, audit and enforcement. Table 17 lists some pointers in navigating these policies associated with vehicle end-of-life, with areas for action illustrated in Figure 13. table 17 elements of success for i/m programs policies on vehicle end-of-life Assess the appropriateness of policies on importation or registration of used/ refurbished vehicles. Loose policies on the importation of used or refurbished vehicles, engines and parts have an effect on emissions control and roadworthiness of vehicles. Used or refurbished vehicles, while temporarily able to pass emissions and safety standards, have shortened duration of usable life, putting pressure on inspection and maintenance services, as well as affecting retirement and scrappage policies. Assess the appropriateness and timeliness of policies on forced obsolescence and scrappage. Vehicles that can no longer be repaired to pass emission and safety standards should be retired, but end-of-life must be monitored to prevent re-entry of vehicles on the road. Forced obsolescence and scrappage schemes have had limited success in other countries. Vehicle phase-out policies in one area may just transfer pollution out of major cities into smaller ones. Quality control schemes should be in place to prevent trade and re-use of pollution-causing parts from scrapped vehicles. Sources: Adopted from Walsh (2013; 2005) and Civic Exchange (2013) figure 13 challenges for i/m and vehicle end-of-life policies in asia VEHICLE INSPECTION & MAINTENANCE IN ASIA 38

40 9. conclusion In this concluding chapter we revisit the components of inspection and maintenance programs from Chapter 2.2, now with an added perspective of the status of I/M programs in Asia, vis-à-vis prescribed elements of success, and recommendations on how to address identified challenges. A. Institutional design of the I/M program. Centralized I/M systems developed through multi-agency collaboration at the early stages of planning provide a good framework for oversight, which should include funding for programmatic audit. At present, fully centralized I/M systems with proper accreditation and audit mechanisms are generally not yet in place in Asia. Regular coordination between policy makers at the national level and policy enforcers at the regional or city level would provide consistency in implementation that is key for public trust and participation. Localized studies on the full cost of I/M program enforcement that includes checks and assessments of the system should be conducted towards developing a self-sustaining program. B. Fleet characterization through vehicle registration statistics, fleet density per person or per road length, age of fleet. A centralized database for vehicle registration that allows for proper fleet characterization that can guide formulation of I/M policies, as well as real-time integration with emissions and roadworthiness test results, would give teeth to a mandatory periodic inspection policy. Knowing the nature of the active fleet would provide insight as to what types of vehicles are to be prioritized in terms of curbing emissions, given limited resources and high vehicle populations. In Asia, I/M program policies, infrastructure and campaigns should be designed with emphasis on identified vehicle types of concern, particularly two- and three-wheelers as well as diesel vehicles with high kilometers travelled. C. Policies on periodic technical inspection, infrastructure for vehicle testing centers. Two characteristics of an effective policy would be timeliness and appropriateness, in terms of reflecting the characteristics of the fleet and considering existing vehicle technologies, while advancing towards cleaner emissions. In the region, the dominant idle, no-load tests and free acceleration tests, while efficient and inexpensive, may need to be evaluated if emission tests are to reflect actual on-road conditions. Testing results can also be used as indicators and provide feedback to the effectiveness of policies and practicability of existing standards. High failure rates are symptomatic of underlying issues that need to be identified and subsequently addressed. D. Policies and institutional support for vehicle maintenance and repair. The maintenance and repair service industry should be well-equipped and well-trained to address the needs of vehicles that fail emissions testing. A strong inspections program would fail without an equally strong maintenance support system. However, maintenance services should be separate and operated independently from testing centers to avoid conflict of interests that would reduce public trust in the program. Proposals to outsource inspection duties to repair centers should be reconsidered. In Asia, given the largely informal nature of repair service centers, emphasis should be given towards capacity building, accreditation and professionalization of this industry. 39 VEHICLE INSPECTION & MAINTENANCE IN ASIA

41 E. Policies and institutional support for enforcement and detection technologies, increased public awareness and participation. I/M programs depend largely on the cooperation of the public, and this entails building trust and support for the system a very difficult task given the regulatory nature of the program. To gain and maintain public trust, enforcement must be done in a fair, objective manner. Hence increasing detection capabilities through sensory equipment as well as complementing periodic inspections with roadside testing are worthwhile investments for the region s I/M programs to be felt by the public. Information, education and awareness campaigns may be tailored to different types of stakeholders private vehicle owners, commuters, trucking companies and the like towards active involvement in improving air quality. F. Supporting policies on vehicles that enter and exit the active fleet. Since management of in-use motor vehicles is affected by units that enter and exit the fleet, there must be efforts to prevent re-entry of used vehicles and parts on the road once these are deemed unfit for continued operation. Implementation of vehicle retirement and scrappage programs must be done with caution, as these policies may inadvertently cause pollution to be transferred from central urban economies to their peripheries. In the region, while there are restrictions for importation of used cars, these guidelines are more lenient for heavy duty vehicles and diesel equipment. End-of-life policies for vehicles must also be coupled by studies on the fates of retired vehicles and scrapped parts. An effective Inspection and Maintenance program is often considered to be difficult to attain, even in developed economies. Given the inherent complexity of motor vehicle management, it is essential that lessons learned are constantly shared, missteps are retraced so that critical points identified, and failures can serve as feedback for improvement, in the region s collective effort towards better air quality. VEHICLE INSPECTION & MAINTENANCE IN ASIA 40

42 REFERENCES Asian Development Bank Vehicle Emissions Standards and Inspection and Maintenance: Policy Guidelines for Reducing Vehicle Emissions in Asia. Retrieved from documents/guidelines/vehicle_emissions/inspection_and_maintenance.pdf. Clean Air Asia Accessing Asia: Air Pollution and Greenhouse Gas Emissions Indicators for Road Transport and Electricity. Manila. Retrieved from node/11573 Civic Exchange. August A Review of the Hong Kong Inspection and Maintenance Programme for On-road Vehicles. Hong Kong. Retrieved from en/publications/ GTZ Inspection & Maintenance and Roadworthiness. Sustainable Transport: A Sourcebook for Policy-makers in Developing Cities. Retrieved from www2.gtz.de/dokumente/ bib/ pdf International Transport Forum Low-Carbon Mobility for Mega Cities: What different policies mean for urban transport emissions in China and India. Retrieved from internationaltransportforum.org/jtrc/environment/cop21/cop-pdf-04.pdf National Research Council (2001), Evaluating Vehicle Emissions Inspection and Maintenance Programs, the National Academy Press. Retrieved from php?record_id= UNEP Partnership for Clean Fuels and Vehicles Status of Fuel Quality and Vehicle Emission Standards in Asia-Pacific. Retrieved from pdf/maps_matrices/ap/matrix/ap_matrix_jan2016.pdf United States Agency for International Development Vehicle Inspection and Maintenance Programs: International Experience and Best Practices. Retrieved from http//pdf.usaid.gov/ pdf_docs/pnadb317.pdf. Walsh, Michael P Motor Vehicle Inspection and Maintenance: The Worldwide Experience. Retrieved from Walsh, M. P Motor Vehicle Inspection and Maintenance Programs: International Experience and the Lessons Learned. First Clean Fuels and Vehicles Forum in the ASEAN Region/ November , Singapore. Retrieved from default/files/presentations/michael_walsh_-_im_-_05_nov_2013.pdf 41 VEHICLE INSPECTION & MAINTENANCE IN ASIA

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