Higher fuel efficiency has become increasingly important in the automotive industry in recent years, as fuel prices have increased rapidly and anthropogenic global warming has become conventional wisdom. In this newsletter we focus on Nanotechnology as an enabler of breakthroughs in fuel efficiency and alternative propulsion technology. On one hand, nanotechnology enables weight reduction in composites by reducing weight while maintaining strength and safety standards. Another important area for Nanotechnology is that it enables significant performance improvements in Li-ion, fuel cell and supercapacitor technology, which are essential for developing next-generation commercially viable alternative propulsion systems. Nanotechnology is also benefiting catalyst technology by lowering the need for precious metal loading. Finally, we also look at some ancillary Nanotechnology applications in automotive coatings, climate control and pressure sensors.