Vehicles sold today are on average 30% more fuel efficient than vehicles sold in 2004.
Consumer demand for the most energy-efficient vehicles remains lower than desired for many reasons. In 2023, the auto industry produced:
- More than 186 models of vehicles that achieve over 40 MPG (highway)
- More than 110 electric models, including plug-in hybrids (PHEV), battery electric (BEV) and fuel cell electric vehicles (FCEV).
- 77 gasoline-hybrid models.
Customers have multiple goals when car shopping.
Source: Strategic Vision New Vehicle Experience Study, May 2020
Fuel Economy & Greenhouse Gas Emissions
The federal government develops mileage standards called “Corporate Average Fuel Economy,” or CAFE, and sets separate requirements for greenhouse gas (GHG) emission standards. Once the government sets these requirements, automakers are evaluated based on the products consumers choose to buy.The federal government recently updated fuel economy and GHG standards for 2021-2026, which require continued improvements in fuel economy and GHG emissions
While average fuel economy of all new vehicles continues to rise, sales of the most energy-efficient autos remain low. Sales of the most energy-efficient models will need to grow substantially to meet carbon reduction goals.As automakers look to the future, electric vehicles will continue to play an increasing role, and additional government policies are needed to increase customer awareness and demand, build a robust charging and hydrogen refueling station network across the nation, and continue to balance fuel-efficient and advanced technologies with customer needs.