In November 2024 the EPA released the 50th edition of its annual Automotive Trends Report. More than anything else, the report delivers one clear message: fuel economy and emissions standards continue to deliver massive savings to consumers.
Since 2001, efficiency improvements, driven by standards, have delivered over $9,000 in savings to consumers when fueling up their vehicle over the lifetime of the average new car sold in the U.S. in 2024. Standards work by driving incremental improvements to new vehicles, year after year, and have resulted in significant savings for consumers delivered under both Republican and Democratic administrations.
Over the past 3 years alone, efficiency improvements have delivered $2,200 in lifetime fuel savings for new vehicles. This contrasts with less than $500 in savings delivered cumulatively per vehicle the four years prior—from 2018 to 2021—when standards were being rolled back.
This data shows that when regulators “let the market decide,” consumers do not get the fuel savings they want, and deserve. Importantly, strong federal standards work in a technology neutral way that preserves consumer choice. CR research has also shown that past fuel savings have not come at the cost of increased vehicle prices.
Approximately $6,000 per vehicle in additional fuel savings are on track to be delivered to consumers over the next five years simply by keeping existing policies in place—raising the bar to approximately $15,000 in cumulative savings. However, the scale of the savings delivered will be determined by what does and doesn’t change in Washington over the next few years.
The incoming administration has proposed reverting all federal standards back to 2019 levels. If that were to happen, not only would the $6,000 in future fuel savings be eliminated, but also around $2,700 in savings that have already been delivered over the last five years would be lost. If finalized, a rollback to 2019 standards would result in new vehicles sold in 2029 costing at least $8,000 more to fuel, compared to a scenario in which existing standards are maintained.
The incoming administration has a choice to make: move us backwards as some have proposed, or keep the American automotive industry moving forward, delivering better vehicles that reduce pollution and save consumers more money at the pump?
Key Assumptions:
- Average vehicle lifetime 200,000 miles
- Average gas price $3/gallon
- Estimated compliance with 2029 fuel economy and greenhouse gas standards will result in new vehicles achieving an average efficiency of 39 mpg in 2029.