U.S. Fuel Economy Up Only Slightly in 2016
Light-truck sales soar and hybrid sales suffer as gas prices hit a 12-year low.
![U.S. Fuel Economy Up Only Slightly in 2016 U.S. Fuel Economy Up Only Slightly in 2016](https://eu-images.contentstack.com/v3/assets/blt7121b6ec5c11097b/blt85d45cdb5aa6f32c/66197b03ba180642b825f65b/usfei1612a.png?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
A preliminary overview of the WardsAuto Fuel Economy Index finds the average window-sticker MPG rating of light vehicles sold in the U.S. in 2016 was 25.4 mpg (9.3 L/100 km). A 0.6% improvement over the 2015 result was the smallest year-to-year gain in the 9-year history of the index.
Low gas prices were a major factor in some consumers not opting for high-efficiency vehicles. The national average price of gasoline was $2.25 for the year, a 12-year low. Standard gasoline-powered vehicles accounted for 95.1% of sales, an uptick from 2015’s 95.0%. Share of battery electrics and plug-in hybrids increased slightly to 0.5% and 0.4%, respectively, as new products were introduced. However, hybrid sales slipped from 2.2% to 2.0%.
Light trucks hit a record 60.3% of LV sales. While all segments in this group surpassed prior-year’s share in 2016, the primary body style was CUVs, accounting for 32.5% of all LV registrations. CUVs also were the most improved light-truck segment on the index, up 2.2%, helping push the annual light-truck average 1.7% above like-2015.
The index results for cars rose 2.0%, but share slipped below 40% of LV sales for the first year. Large cars were the only segment to score lower than in 2015, but covered only 1.7% of the LV market. Luxury cars achieved a 4.0% higher rating, mostly because many new electric and plug-in hybrid models fall into this category.
Some automakers were able to achieve significant gains despite the overall subpar outcome. Volvo’s sales averaged 10.0% higher than prior-year, as the XC90 plug-in hybrid accounted for 2.4% of the automaker’s sales in its first full year of availability. Jaguar Land Rover’s index score rose 4.3% with success in its diesel lineup.
Volkswagen saw the sharpest downturn, slipping 3.9% as sales of the e-Golf failed to compensate for suspended diesel sales. Ford sold more alternative-power vehicles than the previous year, but showed a strong shift to light trucks from cars, allowing its index rating to drop 3.2%.
The index results show a dampening of consumer interest in high-efficiency vehicles, but this does not necessarily mean automakers need to work harder to meet NHTSA and EPA fuel-economy regulations. CAFE mandates vary by automaker and are based on the size mix of vehicles sold each model year, so their targets can decrease if there is a significant sway toward larger, generally less efficient body styles.
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