During April, the sales of small fuel efficient cars made up almost 20% of the automotive sales market, that equates to a 19% increase from a year ago. Governments incentives to have more environmentally friendly vehicles on the road as well as rising fuel prices, has led consumers to re-think the buying of big trucks and SUV’s. Some of the big sellers include the new Ford Focus and the Chevrolet Cruze.

The overall industry is expected to report slightly higher sales, as the market continues to recover from the recession. Automobile and automobile part shortages as well as the lack of discounts will be a big factor in consumers decision to purchase new vehicles. Consumers may decide to keep driving their old vehicles until the deals return.

California is known as one of the largest automobile markets in the United States. They also have some of the strictest government environment regulations which has made them one of the leading markets for hybrid vehicles. Because of this, the Center for Automotive Research (CAR) in Ann Arbor feel that the demand for plug-in and electric cars will follow a similar pattern.

California was the first state were the Chevy Volt, Nissan leaf and the Ford Focus Electric was released, and where fuel cell vehicles are leased in small numbers. According to the CAR report the demand for cleaner technologies is fed by incentives such as tax credits, priority parking spaces for environmentally friendly vehicles, and because California has invested into infrastructure to accommodate the electric vehicle.

As GM launches its plug in hybrid, the Chevrolet Volt, and Nissan releases its all electric Leaf, Mercedes Benz will also be releasing it hydrogen powered vehicles to California residents. Mercedes is leasing the vehicles to a small groups of people in order to study the vehicles performance in real life conditions. This information will be provided to the Department of Energy to help them in their effort to meet stringent mileage and emission regulations.

Powered by an electric motor delivering 134 horsepower, the Mercedes F-Cell B-Class offers the advantages of a gas-powered conventional car, while using half the fuel and emitting only water. “We believe this is a great addition to our fast-growing portfolio of alternative fuel vehicles.” said Sascha Simon, head of advanced product planning at Mercedes-Benz USA. The information gathered by this study will help the effort in transforming the U.S. into a country that is fueled entirely by domestically produced energy

propel biofuels alternativesThe Alliance of Automobile Manufacturers have joined with the Association of International Automobile Manufacturers, the National Marine Manufacturers Association, and the Outdoor Power Equipment Institute in filing a petition challenging the Environmental Protection Agency’s (EPA) decision to approve the sale of gasoline containing 15 percent ethanol for 2007 and newer passenger cars and light trucks. These organizations say they represent those who are concerned about the safety and reliability of the use of increased ethanol. The petition asks that the EPA’s decision be put on hold until it can be determined whether the decision violates the Clean Air Act which limits the circumstances under which the EPA can approve new fuels and additives.

According to the Renewable Fuels Association the waiver should be for all vehicles. The EPA could have avoided market confusion by following all the science to its logical conclusion and allowing the use of E15 for all cars and light duty pickup trucks. According to the ethanol trade association, “Allowing for the use of E15 blends is safe and will help reduce the United States dependency on fossil fuels and imported oil.” The effort is also supported by corn-producing states and alternative fuel proponents who have long sought to increase federal rules boosting the amount of ethanol mixed into gasoline.

Still there is strong opposition to the decision. The infrastructure isn’t there to accommodate the product, the production and use of ethanol can add to the amount of smog put into the air, the use of ethanol will result in higher food prices, and there just hasn’t been enough research to see if automobile can withstand the use of higher ethanol fuel.

The sales of electric cars may not be doing as well as first hoped, but the displays at this years Los Angeles Auto Show hopes to change that. GM’s Chevrolet Volt, the 2011 Green Car of the Year, is one of several displays that hope to spark interest in the sales of green cars. The Volts rival, the Nissan leaf, along with Tesla’s Toyota RAV4 EV, the Fisker Karma, the Mitsubishi I-MiEV, and every other car maker’s electric or hybrid car will be there vying for the green consumers interest.

This year’s show will feature a record of debuts with fifty new vehicles unveiled on press day. This year’s show features more elaborate and interactive exhibits and more manufacturers, making it one of the most dynamic LA Auto Shows in years. The annual event, held at the Los Angeles Convention Center and will be open to the public November 19-28.

With over twenty electric car models arriving at dealerships over the next three years, auto manufacturers feel that the battery powered cars will be the next big seller. The Obama administration is giving more than five billion in tax credits to buyers, and subsidized loans and grants to automakers in an effort to meet the goal of one million hybrids or electric cars on U.S. roads by 2015. But skeptics feel that hybrid and electric vehicles don’t make sense for most drivers, even with tax credits. Electric cars are too expensive, take too long to recharge and don’t provide enough driving range to be practical for most Americans. They feel that only 3% of drivers will actually buy the vehicles, because in order for electric cars to be cost effective for buyers, gas prices will have to rise to almost nine dollars a gallon.

Nonetheless, some of the biggest manufacturers in the auto industry are rushing to produce EVs. Honda recently pledged to put out an EV in 2012. Toyota is creating an electric version of its RAV4 sport-utility vehicle with Tesla Motors and a subcompact electric car based on its tiny IQ. Ford plans an electric version of its Focus compact and an electric van. BMW is building the MegaCity electric vehicle, which will feature carbon-fiber body panels to reduce weight and boost driving range.

Much of this is spearheaded by California’s laws that are requiring that the top six auto makers in California offer a zero-emission model by 2012 or face potentially huge fines. The only other alternative is to build electric models under the U.S. Environmental Protection Agency’s clean-air and fuel-economy standards, which are set to get tighter in 2012, and receive government credits.

Since the end of 2009, China has become one of the largest auto manufacturers and markets in the world. The number of registered vehicles on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020. Almost half of the cars manufactured and sold in China are Chinese vehicles, the rest are being produced by joint ventures with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota,… etc.

The negative impact of cars in Chinese cities is already obvious. Congested roads, car accidents, fuel shortages, air pollution, parking difficulties,…etc, have already become issues. Government officials warn that overcapacity of the market will lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems. Analysts feel that the development of green energy vehicles is the best way for China to reduce the environmental impact the exploding auto industry will have on their country.

The green industry in China may seem like a good market to get into, but the hope that American workers will see their products exported to this rich foreign market are not good. China will only do business with companies who share their intellectual property and who manufacture in their country. A foreign company must enter a joint venture with a Chinese firm, and that the firm has to have substantial ownership of the intellectual property, otherwise, there will be a duty on making the car in China.

The White House has already got a jump start on electric technologies by encouraging construction of plants that make electric cars, batteries and parts that go into them. According to the Obama administration, the United States is on track to produce 40 percent of the world’s battery technology by 2015. The industry expects the American market to gobble up most of that supply. In order to keep jobs here, U.S. demand for EV components must rise, otherwise the risk of exporting yet another industry away from U.S. soil will be the result.

It is no secret that Toyota and Tesla have joined forces to develop an all electric Rav4 that they hope will shake up the electric vehicle market. Tesla has already delivered a working RAV4 EV to Toyota earlier this summer and will debut it to the public at the Los Angeles Auto Show.

The vehicle is likely to be one of the stars of the Auto Show, which traditionally hosts “green” vehicle debuts. GM’s Chevy Volt and Nissans Leaf will also be there, but Toyota’s Rav4 hopes to attract the consumer who wants an electric vehicle, but wants something bigger than a compact car.