The U.S. made record gains in fuel efficiency last year but still fell short of meeting fast-approaching deadlines. U.S. automakers have lagged behind rivals in improving mileage per gallon due to their preference for larger vehicles.

According to the latest Automotive Trends Report released by the U.S. Environmental Protection Agency (EPA), actual fuel economy for the 2022 model increased slightly to 26 miles per gallon. That's an increase of 0.6 mpg over the previous year, which is apparently "more than double the annual increase in fuel economy" over the past nine years, according to the EPA.

But while the agency celebrates the incremental improvements in fuel economy, there's still a long way to go to meet the fuel efficiency standards the U.S. has set for itself. By 2026, cars should average 49 miles per gallon. The National Highway Traffic Safety Administration (NHTSA) finalized that goal back in 2022, and earlier this year it proposed higher standards for cars built between 2027 and 2032.

As such, there appears to be a huge gap between America's aspirations and today's fuel efficiency. Fortunately, tracking progress isn't as simple as comparing those goals to the data the EPA released in a report yesterday. Actual fuel economy figures assessed by the EPA tend to be lower than compliance figures, which are the figures used in NHTSA rules.

Estimated real-world figures are measured through laboratory testing and better reflect road conditions and how people drive. Dan Becker, director of the Safe Climate Transportation Campaign at the Center for Biological Diversity, said real-world fuel economy figures are often 25 percent lower than official compliance figures.

With that in mind, automakers will need to make more progress if they want to reach 49 miles per gallon within a few years. Fuel efficiency should improve by 8% annually in 2024-2025 models to meet this target.

Considering that U.S. car companies (excluding Tesla) lag behind brands in other countries, they need to put in more effort. Ford, General Motors, Jeep and Dodge-parent Stellar's average fuel economy last year ranged between 21mpg and 23mpg. They trail foreign carmakers such as Hyundai and Honda, which top the list with around 29mpg.

Tables from the EPA's Motor Trend Report show estimated changes in actual fuel economy and CO2 emissions for large manufacturers between 2017 and 2022. Photo/U.S. Environmental Protection Agency

The culprit for this discrepancy is obvious. The growing popularity of trucks and SUVs has dragged down the fuel economy of American-made vehicles. This also has wider health and environmental consequences.

Very large passenger cars use more gasoline than smaller cars, which also means they produce more tailpipe pollution, contributing to worsening air quality and climate change. Large electric cars are also problematic because they produce more particle pollution from wear and tear on roads and tires.

Fortunately, the U.S. Environmental Protection Agency reported that carbon dioxide emissions from new cars still fell by 3% last year, reaching a record low. However, trucks and SUVs have managed to offset some of that progress.

"The long-term trend away from cars/trucks toward models with lower fuel economy and higher CO2 emissions offsets some of the overall fleet benefits that would otherwise be gained from improvements in each vehicle type," the EPA report said.

"Corporate America is stupid and short-sighted," Becker said. "They would rather continue selling gas-guzzling cars that have been making money than move to advanced technology cars, which is the future."

In addition to making electric vehicles, Becker noted that the company has been slow to adopt other fuel-saving technologies. For example, turbochargers can use waste heat to improve a car's fuel efficiency. But the technology is only available in about 37% of 2022 models from major manufacturers. Luxury automakers have the highest adoption of turbocharging technology, with nearly all BMW vehicles and 90% of Mercedes' 2022 models using turbocharging. Stellantis has the lowest adoption rate at 13%.

"All car companies have the technology to meet their fuel efficiency goals," Becker said. "This is automotive mechanics, not rocket science."