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Improvements in the fuel economy of passenger cars and trucks contribute directly to CO2 reductions. Recently low fuel consumption cars are being developed, however most cars are still old types. This study estimates the effect of new engine types, light weight cars, kinds of fuel, and running conditions on fuel economy and CO2 emissions with a new calculation method of fuel consumption. In this calculation method the fuel consumption and CO2 emissions are easily calculated from the indicated thermal efficiency and friction mean effective pressure for different engine types and sizes. By this method the overall fuel consumption and CO2 emissions from small passenger cars to heavy duty trucks were estimated for roads through the center of a small city. As a result, the influence of new type engines, light weight cars, fuel properties and driving patterns on fuel economy and CO2 was made clear.