Micro- and mild-hybridization (jointly labeled as M-HEV) is gaining popularity as a cost-effective technology for fuel economy improvement, but whether and how M-HEV may compete against less efficient conventional internal combustion engine vehicles (ICEV), more efficient full hybrid electric vehicles (HEV), and plug-in electric vehicles (PEV) is not well understood. As such, this study aims at evaluating the impact of the market adoption of M-HEV on the average fuel economy of the new vehicle fleet and on the sales share of PEVs. The study reviews recent sales trends and market forecasts, and uses published estimates of manufacturing cost and fuel economy of M-HEV with an existing discrete choice model (Market Acceptance of Advanced Automotive Technologies or MA3T) to project the market penetration and impacts of M-HEV under different scenarios of M-HEV choice positions, designed to enhance conclusion robustness. It is found that among engine-based powertrain choices, micro-HEV appears to be the most cost-effective, followed by ICEVs, mild-HEV and finally full HEVs. M-HEV technologies are likely to improve fleetwide average fuel economy without significant adverse effects on sales of plug-in electric vehicles, and are likely to remain highly competitive outside PEVs through 2050.