The global U.S Flexfuel Cars Market is estimated to be valued at US$ 4.47 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The U.S Flexfuel Cars Market consists of cars that can run on more than one fuel like gasoline and ethanol or methanol fuel. These cars have flexible fuel vehicles (FFVs) installed in them that allows their gasoline engines to operate on mixtures of gasoline and fuels like ethanol. Flexfuel cars offer better fuel economy as compared to regular gasoline fueled cars. They also reduce dependency on foreign oil and help cutting emissions due to the renewable nature of biofuels like ethanol.
Market key trends:
One of the key trends in the U.S Flexfuel Cars Market is growing production of flexfuel vehicles by major automakers. For instance, in 2023, Ford has plans to increase production of its Ford F-150 Lightning electric truck and introduce other electric models as part of its target to achieve 50% of its global vehicle volume being all-electric by 2030. Additionally, rising environmental concerns among consumers regarding carbon emissions from vehicles is increasing demand for more fuel-efficient and eco-friendly vehicles like flexfuel cars. Furthermore, government initiatives and policies promoting adoption of alternative fuels is positively impacting growth of flexfuel vehicles market in the country. For instance, offering of tax credits and incentives on purchasing of flex fuel vehicles by various state governments in the U.S.
Porter’s Analysis:
- Threat of new entrants: The U.S Flexfuel Cars Market is consolidated with a few large players holding majority share leaving less scope for new entrants. Large investment required for manufacturing facilities adds to barriers.
- Bargaining power of buyers: Buyers have high bargaining power due to presence of various options. Buyers can opt for gasoline cars or electric vehicles as substitutes to flexfuel cars.
- Bargaining power of suppliers: Major auto manufacturers have in-house production of parts lowering dependence on suppliers. However, suppliers of specialized parts have some bargaining power.
- Threat of new substitutes: Electric vehicles pose major threat being environment-friendly with more incentives. Hybrid electric vehicles also gaining traction reducing demand for flexfuel cars.
- Competitive rivalry: Market dominated by few global players. Intense competition on pricing and features.
Key Takeaways:
The Global U.S Flexfuel Cars Market Growth is expected to witness high, exhibiting CAGR of 6.5% over the forecast period, due to increasing consumer demand for vehicles with lower emissions.
Regional analysis: North America dominates U.S Flexfuel Cars Market owing to supportive government policies and increasing environmental concerns in the region. US accounts for over 70% of flexfuel car sales in North America driven by states like California and mid-western area.
Key players: Key players operating in the U.S Flexfuel Cars Market are Renault SA, PSA Group, Tata Motors, Changan Automobile, BAIC Motor Corporation, Toyota Motor Corporation, Honda Motor Co., Nissan Motor Co., Volkswagen AG, BMW Group, Daimler AG, Hyundai Motor Company, Fiat Chrysler Automobiles, Mitsubishi Motors, Ford Motor Company, General Motors, Mazda Motor Corporation, Subaru Corporation, Isuzu Motors Ltd, and Suzuki Motor Corporation. Toyota Motor Corporation leads market share with wide range of flexfuel vehicles like Camry, Tacoma, 4Runner, etc.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
