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To restrain the phenomenal increase in oil consumption in China, the Chinese government called for measures to reduce oil consumption of the road transportation sector through adopting vehicle fuel consumption standards. This paper describes the development of China's first set of fuel consumption standards for light-duty passenger vehicles. The adopted standards cover M1 class vehicles, which, according to European definition (and adopted by China), include passenger cars, minivans, and sports utility vehicles (SUVs). In particular, we present the goal, technical background, structure, and values of the adopted standards. We also present their potential effect on oil use reduction. The standards are set in liters of fuel consumption per 100 km for individual vehicle weight categories. The standards are maximum fuel consumption values for given vehicle weight categories.