To any prospective car buyers, fuel efficiency is an important consideration – it decreases emissions of harmful greenhouse gases, while saving people money at the pump. These days, consumers have options as manufacturers continue to release new and increasingly affordable electric, hybrid, and diesel engines, replacing traditional petrol.
In the US, the share of diesel engines in personal cars appears to be growing, especially among pickup trucks. In 2018, sales of light duty diesel vehicles reached their highest annual level – over 500,000 vehicles, and about 3% of total car sales. The vast majority of this increase was in pick-up trucks, a trend likely to continue as car manufacturers continue to roll out more powerful diesel updates to their fleets, like the 2020 Chevy Silverado. That being said, even fully electric pick-up trucks appear to be on the horizon. This month, Ford announced an electric f150, able to tow one million pounds. For now, though, it seems that diesel is still the most fuel-efficient option for pick-ups.
Traditional hybrids, plug-in hybrids, and full-electric vehicles accounted for nearly 60% of all alternative powered vehicle sales in 2018. As popular electric car companies like Tesla focus on affordable options, and other companies start releasing their own electric models, this share may actually increase, especially among sedans and SUVs. GMC is dropping the diesel options for the Chevy Equinox and GMC Terrain from their 2020 lineup, while many electric cars are hitting the market. In 2019, five automakers unveiled electric cars that will be able to drive further than 200 miles, and there will be eight more by the end of 2020. Tax credits and regulations seem to have incentivized purchasing electric cars. As individual states, like California, consider implementing emissions regulations congruent with tax incentives for electric vehicles, sales could rise in high population areas. California hopes to have 5 million zero-emission vehicles on the road by 2030, and will need to dramatically increase incentives to hit their target – the State Assembly bill would triple the rebate consumers get when purchasing an electric vehicle, from $2,500 to $7,500.
The market trends can be interpreted in a number of directions. While consumers have indicated that they are open to purchasing electric vehicles, we are just beginning to observe their behavior as more options become available. Their ultimate choice will be informed by a factor of outside forces. Federal and regulations impact manufacturer production decision, while tax incentives may influence buyers in one direction or the other. It will be a few years before we know whether one engine overtakes the others.
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