"Fuel economy improves with subsequent vehicle generations." This assumption proves true with a glance at the U.S. EPA's light-duty average fuel economy over the years.
Of course, fleets don't put fleet drivers in vehicles on averages; they spec specific models. How much does their fuel economy improve over time?
ICE Vehicle MPG Changes
To find out, Automotive Fleet asked the lifecycle cost experts at Vincentric to calculate the fuel expenses of popular fleet models for the 2019 and 2024 model years. We kept this analysis to internal combustion engine (ICE) models.
We only chose vehicles that existed in both model years for an apples-to-apples comparison. Though vehicle options and trim level designations change between model years, we chose the closest matches.
Vincentric calculated fuel at three years, 15,000 miles per year, $4.09 for vehicles requiring premium fuel (BMW 3-Series, Mercedes C-Class, Cadillac Escalade, and Volvo XC-60) and $3.31 for regular (the rest).
The Results
Our comparison shows an improvement in overall MPG, but not by a significant amount. Average MPG improved from 23 city and 31 highway in 2019 to 24/32 in 2024. From the 2019 to the 2024 model year, total average fuel expense decreased by 2.7%, from $6,243 to $6,077.
Six models saw their fuel economy worsen. Six stayed the same, and 11 improved.
The big winners were Ford Explorer, with a 16.5% decrease in fuel expense, Mazda CX-5 with a 14.2% decrease, and Kia Sportage with a 12.1% decrease.
In the case of Ford Explorer, the vehicle entered a new generation between those model years and offers a broader range of engine choices.
The Takeaway
First, a caveat: This is only a snapshot of a small subset of models and does not represent the breadth of engine choices for each model.
In this admittedly narrow analysis, subsequent vehicle generations don't always show meaningful improvements in fuel economy.
Manufacturers engineer vehicles not just for improvements in fuel economy but also for vehicle functionality, safety, and driver comfort. Fleets spec holistically too.
In this case, revising their selector lists is a more productive path for fleets that have improving fuel economy higher on the priority list. A more comprehensive initiative to move toward more fuel-efficient models, including hybrids, plug-in hybrids, and pure electric models where applicable, will result in a quicker path to lowering fuel expense and carbon emissions.