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Technology development may play a role in fuel reductions in transport, especially regarding automobiles. But these developments may be off-set by diverting technology gains into non-fuel saving vehicle features – “service attributes”. This paper estimates to what extent technological development, in the Swedish new car fleet, has resulted in lower fuel consumption or has improved service attributes. Changes between 1975 and 2002 are mapped through statistical analysis and modeling of a combination of sales statistics and vehicle attributes. About 35% of the effects of enhanced technology and design resulted in a net reduction in fuel consumption. The remaining 65% served to meet consumer demands for such things as increased passenger space and improved acceleration.