America's love of gas guzzlers is hampering progress on fuel economy
One major headwind to fuel economy is Americans’ “seemingly insatiable appetite for trucks,” the analysts said. Trucks’ fuel economy averaged 21 miles per gallon last year, compared with cars at 29 miles per gallon. Six out of 10 new vehicles sold in 2016 were trucks, the highest share since at least 2000, they said.
Then there’s low penetration for hybrid vehicles, which had a market share of 2.9% last year, down from a peak 3.7% in 2013. Declining gasoline prices in the last couple of years are the most likely cause of falling hybrid share, the Tudor Pickering Holt analysts said.
In one of the last moves of the Obama administration, the Environmental Protection Agency last week reaffirmed fuel-economy goals for the next nine years, calling for cars and trucks to average 36 miles per gallon by 2025.
“We believe this target will be extremely challenging to meet, as it would potentially require >60% car share and >10% hybrid share, both of which seem unlikely given recent trends,” the analysts said.
One major headwind to fuel economy is Americans’ “seemingly insatiable appetite for trucks,” the analysts said. Trucks’ fuel economy averaged 21 miles per gallon last year, compared with cars at 29 miles per gallon. Six out of 10 new vehicles sold in 2016 were trucks, the highest share since at least 2000, they said.
Then there’s low penetration for hybrid vehicles, which had a market share of 2.9% last year, down from a peak 3.7% in 2013. Declining gasoline prices in the last couple of years are the most likely cause of falling hybrid share, the Tudor Pickering Holt analysts said.
In one of the last moves of the Obama administration, the Environmental Protection Agency last week reaffirmed fuel-economy goals for the next nine years, calling for cars and trucks to average 36 miles per gallon by 2025.
“We believe this target will be extremely challenging to meet, as it would potentially require >60% car share and >10% hybrid share, both of which seem unlikely given recent trends,” the analysts said.