U.S. Vehicles Achieve Record Fuel Economy in 2022 

New vehicles in the United States attained a record high for fuel economy in 2022, marking the most significant annual improvement in nine years. The average fuel economy reached 26 miles per gallon (mpg), representing a 0.6 mpg increase from the previous year, as reported by the Environmental Protection Agency (EPA).

The EPA highlighted the pivotal role of electric vehicles (EVs) and plug-in hybrid electric vehicles in boosting the average fuel economy by 1.2 mpg in 2022. Despite this surge, the Detroit Three automakers—General Motors, Ford, and Stellantis—trailed behind their competitors in achieving fuel efficiency gains.

Fuel economy is anticipated to witness further growth, with a forecasted increase to 26.9 mpg in 2023, according to the EPA. The positive trajectory aligns with the growing adoption of electric and hybrid vehicles contributing to the overall efficiency of the U.S. automotive fleet.

The report revealed that Tesla sold additional emissions credits, while General Motors and Mercedes-Benz purchased credits to meet regulatory requirements. In terms of fuel efficiency rankings, Tesla emerged as the most efficient automaker, followed by Hyundai and Honda. Stellantis, GM, and Ford held lower positions.

While fuel economy made strides, the report highlighted new records for horsepower, vehicle weight, and size in 2022, with projections indicating that these metrics will continue to hit record levels in 2023. This dual narrative underscores the industry’s balancing act between efficiency and performance.

The EPA noted a significant shift in consumer preferences, with electric vehicles, plug-in hybrids, and fuel-cell vehicles reaching 7% of production in 2022. Projections for 2023 indicate a further increase to 12%, emphasising the ongoing transformation in the automotive landscape.

The report unveiled a noteworthy trend in consumer choices, revealing that Americans are increasingly favouring SUVs over traditional sedans. SUVs accounted for 54% of vehicles sold in 2022, surpassing sedans and wagons, which fell to just 27%.

Despite advancements, concerns persist as the report highlighted that emissions from gas-powered vehicles have shown minimal improvement since 2015. Critics, including Dave Cooke from the Union of Concerned Scientists, contend that automakers need to intensify efforts to address emissions from conventional gasoline vehicles.

The EPA, earlier in April, proposed comprehensive emissions cuts for new vehicles through 2032, with a focus on achieving a 56% reduction in fleet average emissions. This proposal aligns with the goal of having 67% of new vehicles being electric by 2032. However, there are contrasting views, with calls from environmental advocates for even tougher rules, while automakers and the United Auto Workers union advocate for a more lenient stance.