As it stands now, Japan's federal standard is a fleet average of 16.3 kilometers per liter of fuel, a figure that will likely be increased to 20.3 km/l by 2020, according to the Nikkei via Reuters.
The new standards will not apply to electric cars or plug-in hybrids due to their alternative sources of energy, but standard hybrids will be forced to meet the new standards. As a result, automakers such as Toyota who sell vast amounts of gas-electric hybrids in Japan will likely have little trouble meeting the new standards.
Japan hopes that the new standards will help to reduce fuel consumption, reduce emissions and help push automakers to develop newer technologies and more efficient designs.
Theoretically, this may also help push Japanese automakers to develop more fuel efficient vehicles for global markets as well, potentially increasing exports for the nation.
References
1.'Japan plans new...' view