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Environmental concern demands that emissions and fuel consumption of vehicles have to improve considerably in the next 10 years. New technologies for gasoline engines, downsizing with high boosting, direct injection and fully variable valve train systems, are being developed. For Diesel engines, improved components including piezobased injectors and particle filters are expected. In the drive train new starter-generator systems as well as automated manual transmissions are being developed. In parallel alternative fuels are investigated and the use of hybrid drives and fuel cells are developed. This paper reports the progress made in the recent years and gives a comparative assessment on the different technologies with a prediction of the introduction dates and volumes into the market.