The US Environmental Protection Agency (EPA) released its annual Automotive Trends Report, which shows that model year (MY) 2021 vehicle fuel economy remained at a record high—but flat with MY 2020 fuel economy—while CO₂ emission levels reached a new record low. The report also shows all 14 large automotive manufacturers achieved compliance with the Light-duty Greenhouse Gas (GHG) standards through at least MY2020.

Estimated real-world fuel economy and CO₂ emissions. Source: EPA

Highlights of the report:

• For MY 2021, vehicle fuel economy remained at an all-time high of 25.4 miles per gallon (mpg), and new vehicle real-world CO₂ emissions fell by 2 g/mi to a record low of 347 grams per mile (g/mi).

• All vehicle types are at record low CO₂ emissions; however, the market shift away from cars and towards sport utility vehicles and pickups has offset some of the fleetwide benefits.

• Since MY 2004, average fuel economy in the US has increased by 32%, or 6.1 mpg.

• The average estimated real-world CO₂ emission rate for all new vehicles fell by 2 g/mi to 347 g/mi.

• Since MY 2004, CO₂ emissions have decreased 25%, or by 114 g/mi. Over that time, CO₂ emissions have been reduced in 14 of the past 17 years.

• Preliminary data suggest that CO₂ emissions and fuel economy in model year 2022 will improve from the levels achieved in 2021.

Percent change in real-world fuel economy, horsepower, weight, and footprint. Source: EPA

Overall, advancements in technology are helping industry reach these carbon reduction achievements. In model year 2021, hybrid vehicles reached a new high of 9% of all production. These vehicles can use a larger battery to recapture braking energy and provide power when necessary, allowing for a smaller, more efficiently operated engine.

Technology share for large manufacturers, MY 2021. SOurce: EPA

The combined category of electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs) increased to 4% of nationwide production in MY 2021.