The best statement that explains why modern automobiles typically achieve only about 30% fuel efficiency is: much of the energy is transformed into heat.
In internal combustion engines, a significant portion of the energy from fuel is lost as heat due to various factors—including friction, engine inefficiencies, and the heat rejected through exhaust gases. While some energy is used for useful mechanical work to propel the vehicle, a large amount is inevitably converted to heat rather than being utilized for motion.