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Increasing Demand of Fuel Efficient Cars Business Finance 

Increasing Demand of Fuel Efficient Cars

The demand for smaller and fuel efficient cars is increasing every other day around the world. The major reasons behind this trend is increasing gas prices and growing environmental concerns. These factors have driven the demand up on cars offering fuel efficiency and low environmental effect. Consumers are purchasing fuel efficient cars more than ever to get relief from climbing gas prices. While car manufacturers are also proved to be competent in meeting the increasing demand.ashah-smaller-fuel-efficient-car
According to National Automobile Dealers Association (NADA), the sales of small and fuel efficient cars has been increased manifold during last decade and is predicted to increase further in future. Although the demand of larger vehicles such as SUVs and pickups are experiencing decline these days but there is clear indication of their sales to be increased in next few years.

One of the major advantages of fuel efficient cars is that it leads to reduce the usage of oil without compromising on the miles covered by these cars. The reduced in oil use has smaller environmental impact due to small amount of carbon dioxide (CO2) emissions. It is also economical as the prices of oil are fluctuating every other day, making it quite unpredictable.
The introduction of Corporate Average Fuel Economy (CAFE) resulted in extensive change in fuel-economy standards of the federal government. According to CAFÉ, the average fuel economy for cars must improve from 27.5 mpg (from 1990), to 37.8 mpg (by 2016) to compete with the ever increasing challenges of increasing fuel and environmental threats.
The government expects the prices of fuel efficient cars to be increased by $926 due to the incremental costs of better mileage. Each of these vehicles is forecasted to save about $4000 in fuel costs over its lifetime.
The car manufacturing companies have been participating in this trend to provide diverse choices to the consumers. They intend to produce cars with the best gas mileage, by making improvements and adding more options in this sub-sector.
Here is a list of the car manufacturers, presenting fuel efficient vehicles to its consumers by offering various models (Arranged in alphabetical order):

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