The market share for alternative vehicles is growing steadily as consumers become better aware of the fuel economy they provide, according to the Energy Information Administration’s “This Week in Petroleum” report, released last week.
In 2008, alternative light-duty vehicles accounted for about 13 percent of new light-duty vehicle sales, with flex-fuel vehicles representing about 80 percent of total alternative vehicle sales, the report states.
The EIA predicts that the market share of alternative vehicles will soar to 49 percent of new vehicle sales by 2035 amid more stringent corporate average fuel economy standards, the renewable fuel standard and higher fuel prices.
Factors that could influence alternative vehicles’ market share going forward include technological breakthroughs, policies to mitigate greenhouse gas emissions, the availability of incentives for the adoption of alternative vehicles and developments in the oil markets.
Historically, vehicles with mechanical drive-trains powered by spark-ignited gasoline-fueled engines represent the vast majority of new light-duty vehicle sales. Diesel powered light-duty vehicles, which are widely used in Europe, briefly gained traction in the U.S. market in 1981 with 5.5 percent of light-duty vehicle sales. But diesel light-duty vehicles quickly fell out of favor as quality and repair problems mounted, the report states.
Due to their superior fuel economy, hybrid and diesel vehicles are now increasing their market share despite higher sticker prices than gasoline-fueled vehicles.
Alternative vehicles include flex-fuel, mild hybrid, hybrid gasoline/diesel electric, plug-in hybrid electric, gaseous, electric and fuel cell vehicles.