- The Environmental Protection Agency reports a 0.6 mpg increase in vehicular efficiency over 2021, and forecasts a rise to 26.9 mpg in 2023.
- Electric vehicles and plug-in hybrids are credited for improving the average fuel economy by 1.2 mpg in 2022.
- Tesla, along with automakers General Motors and Mercedes-Benz, made significant advancements in emissions credits in 2022.
- Stellantis was found to have the lowest fuel economy among major automakers.
- EPA forecasts growth of EVs, plug-in hybrid and fuel-cell production to 12% in 2023.
- The report shows a continuing trend of consumers moving away from cars towards SUVs.
Improved Mileage & Reduction in Climate Pollution
The EPA noted an upward trend in average vehicle mileage over the past year, with a significant push from electric vehicles and plug-in hybrids. The agency forecasts this improvement to continue, with average fuel economy predicted to reach 26.9 mpg by 2023.
Progress in Emissions Credits
Notable moves in the emissions credits market were seen in 2022, with Tesla selling more credits while companies such as General Motors and Mercedes-Benz purchased them. These credits are crucial in helping automakers meet environmental requirements.
Stellantis ranked the lowest in terms of fuel economy among major automakers, followed by GM and Ford. Tesla led in efficiency, followed by Hyundai and Honda . Notably, horsepower, vehicle weight, and size records were all broken in 2022, with projections for even higher records in 2023.
Growth of EVs & Other Green Vehicles
2022 saw a rise in production of EVs, plug-in hybrids, and fuel-cell vehicles to 7%, a figure expected to increase to 12% by 2023. EVs’ average range also improved, reaching a new high of 305 miles.
Shifting Consumer Preferences
Consumer preferences have been moving towards SUVs and away from traditional cars, with SUVs accounting for 54% of vehicles sold in 2022 compared to sedans and wagons’ 27%.
Despite this progress, some voices, such as the Union of Concerned Scientists, argue that efforts to clean up conventional gasoline vehicles are falling behind as they continue to comprise the vast majority of new vehicles sold.
Future Projections and Proposals
The EPA has proposed ambitious emissions reductions for new vehicles up to 2032, with a dramatic 56% reduction in projected fleet average emissions by that year. This would mean that by 2032, 67% of new vehicles would be electric. However, the proposals have met resistance both from the auto industry and labor unions.
The implications of these advancements and industry trends on the financial market are significant, potentially influencing stock trading trends of related car manufacturers and oil companies.