The market for gasoline hybrid and diesel light-duty vehicles in the USA is set for growth, according to a new report from the US Department of Energy (DOE).

The report, entitled "Future Potential of Hybrid and Diesel Powertrains in the US Light-Duty Vehicle Market", forecasts growth of four to seven per cent in light-duty diesel vehicles by 2012 and predicts that by 2008 hybrids could command four to seven per cent and diesels two to four per cent of the light-duty market.

The study suggests that by 2012 these market shares could rise to 10-15 for hybrids and four to seven per cent for diesels.

The study authors also predict that diesels and hybrids could capture 40 per cent or more of the light-duty vehicle market, if they were made widely available across vehicle classes, makes, and models.

Concluding the findings of the study, the authors of the report said: "Diesel and hybrid technologies each have the potential to increase light-duty vehicle fuel economy by a third or more without loss of performance, yet these technologies have typically been excluded from technical assessments of fuel economy potential on the grounds that hybrids are too expensive and diesels cannot meet Tier 2 emissions standards.

"Recently, hybrid costs have come down and the few hybrid makes available are selling well. Diesels have made great strides in reducing particulate and nitrogen oxide emissions, and are likely though not certain to meet future standards."