Steeper Government Targets

Automakers have accelerated their efforts to introduce energy-efficient vehicles so they are ahead in meeting government fuel economy and greenhouse gas standards now, but steeper targets lie ahead. Substantially greater consumer purchases of the most energy-efficient vehicles on sale today will be needed to meet these projected standards.

Fuel economy is rising but steeper standards are ahead

Source: CO2 and Fuel Economy Trends Report, 1975-2016

Government targets for all passenger vehicles are projected to increase by 30% by 2021 and 57% by 2025. This steep increase especially affects light trucks (vans, SUVs, pickups), which would be required to improve mileage by 34% by 2021 and 61% by 2025 to meet projected federal standards.

Few vehicle models can meet projected government targets.

In fact, future MPG targets are so high that less than 4% of current models meet 2022 targets, and the sales of these most energy-efficient vehicles remain low.

Source: WardsAuto Fuel Economy Index

Few vehicles from Model Year 2015 would meet the Model Year 2025 targets. In fact, the standards are so steep that not all hybrid vehicles on sale today would meet the 2025 targets. 

Only some hybrids and electric vehicles are projected to be able to meet future government targets.