Electric-drive and lightweight vehicles can reduce CO2 emissions in road passenger transportation. However, maximum reductions are limited by the extent of their diffusion. A vehicle fleet stock turnover model was developed to study the impact of powertrain electrification, vehicle size reduction and lightweight materials substitution on light-duty vehicle fleet energy consumption, CO2 emissions and cost; and used in the case of Japan. Vehicle types included internal combustion engine vehicles, hybrid electric vehicles, battery electric vehicles, and fuel cell hybrid electric vehicles; using two glider types, conventional and lightweight; available in three vehicle size classes, normal, compact and mini-sized vehicles. Diffusion of mini-sized lightweight battery electric vehicles has the largest potential for tank-to-wheel energy consumption and CO2 emissions reductions, 70.6 and 92.2%, compared to the 2050 baseline values; with a net cash flow larger than zero until 2045. In contrast, diffusion of mini-sized lightweight fuel cell hybrid electric vehicles has the lowest net cash flow by 2050, with negative values from 2033 and potential tank-to-wheel energy consumption and CO2 emissions reductions of 55.4 and 82.9% compared to the 2050 baseline values. Lightweighting reduces significantly the capital cost of battery electric vehicles and fuel cell hybrid electric vehicles, favoring their deployment.