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For an automotive application of a fuel cell power system, it is important to maximize the fuel conversion efficiency, while also providing the required peak power levels for vehicle performance. This paper first compares the fuel conversion efficiency and power density of a state-of-the-art direct-methanol fuel cell (DMFC) with the equivalent parameters of a state-of-the-art direct-hydrogen fuel cell (DHFC). The cell level comparison is then extended to the system level for a potential ZEV automotive application. It is concluded that a DMFC-powered vehicle can become directly competitive with a DHFC-powered ZEV (Zero Emission Vehicle) in any localities or market niches where ZEVs are “a condition of doing business” as a vehicle manufacturer. Following a brief outline of the experimental conditions used to generate the DMFC data reported and analyzed in this paper, a technique for optimizing the conversion efficiency of a DMFC is briefly reviewed.