Automotive efficiency has reached unprecedented levels in the United States, with modern gasoline-powered vehicles achieving record-high fuel economy numbers. However, this progress could face significant changes under potential new leadership.
Recent data from the Environmental Protection Agency’s Automotive Trends Report reveals that new vehicles sold in 2023 achieved an average of 27.1 miles per gallon, marking the highest efficiency rate since the agency began tracking these metrics. This represents a dramatic improvement from 1975, when vehicles averaged just 13.1 miles per gallon.
The incorporation of electric vehicles into the automotive landscape has contributed to substantial reductions in environmental impact. The EPA reports that the adoption of EVs and plug-in hybrids has helped decrease CO2 emissions by 11 percent in model year 2023. Current real-world carbon dioxide emissions have dropped to 319 grams per mile, though more ambitious targets lie ahead.
Under regulations adopted by the EPA in March, set to begin in 2027, automakers will need to ensure that electric vehicles comprise approximately 56% of their total new vehicle sales by 2032 to meet stricter emissions standards. The agency has established industry-wide targets of 170 grams per mile by 2027, further reducing to 85 grams per mile by 2032.
However, these environmental gains and future targets may face challenges from the incoming administration. The automotive industry, through its lobbying organization, the Alliance for Automotive Innovation, has already reached out to the President-elect’s transition team at Mar-a-Lago. In a November 12 letter, the
organization’s president and CEO, John Bozzella, advocated for adjusting emissions regulations to align with current market conditions, citing concerns about EV adoption rates.
This wouldn’t be the first time such regulations have faced revision. During his previous term, Trump reversed Obama-era requirements that had mandated approximately 5% annual increases in vehicle fuel economy through 2026. According to recent reports from Reuters, the transition team is already exploring ways to modify the Biden Administration’s current fuel efficiency and emissions requirements, with sources indicating the move aims to address automakers’ concerns about overly demanding regulations.
The industry maintains that while they support environmental regulations, these need to be achievable and in line with market realities. Bozzella’s letter emphasized the importance of a “stable and predictable regulatory environment” for the auto industry’s continued success and competitiveness.
EPA Administrator Michael Regan had previously highlighted the positive impact of current regulations, noting that manufacturers’ technological innovations were directly improving air quality and public health. However, the potential policy shift under new leadership could significantly alter the trajectory of these environmental improvements.
The situation highlights the ongoing tension between environmental protection goals and industry concerns about implementation
feasibility. As fuel economy and emissions standards have become increasingly politicized, the auto industry finds itself navigating between progressive environmental targets and practical market considerations.
This potential regulatory reversal comes at a time when consumers have more fuel-efficient vehicle options than ever before, with numerous models across various segments achieving over 30 miles per gallon. The outcome of these proposed changes could have lasting implications for both environmental progress and consumer choice in the automotive market.