The US Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced new fuel economy standards which follow President Biden’s executive order to drive American leadership forward on clean cars.
The new standards will require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks starting from the model year 2026. In addition, the standards are to increase fuel efficiency by 8% annually for model years 2024-2025, and up to 10% annually for the model year 2026. Further, they will also increase the estimated fleetwide average by nearly 10 miles per gallon for the model year 2026, relative to the model year 2021.
In terms of fuel savings, the new CAFE standards for the model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, compared to the current standards.