Scrappage Plunges Diesel Sales in Europe

The European market for diesel cars has decreased, as buyers who took advantage of government scrappage incentives went for smaller gasoline engines. According to JD Power, the diesel car market in Europe peaked at 53 percent in 2007 and is heading for about 45 percent in 2009. This decrease is also a consequence of the weak car market and lack of money, as usually diesel cars are cheaper than the gasoline ones.

"In the German car market, for example, the diesel share has fallen by around 20%. In the middle of this year the German diesel share hit a low point of just 27%. It has picked up a little since then as the market returns to a more normal segmentation profile," Al Bedwell, analyst for JD Power, was quoted as saying by just-auto.com. "We're at the diesel share trough now. As scrappage schemes end, diesel share will recover."

Even though things are about to get brighter for the diesel manufacturers, it’s important to know that "diesel share won't recover to the peaks that we have seen in the past because we are starting to see the impact of more fuel efficient gasoline engines, especially in small cars."

According to Al Bedwell, “diesel is still essential to hit long-term EU CO2 reduction targets and so it will still account for 40% of new car sales in ten years' time.”

Trying to explain the global picture, Bedwell says that “decline in the European diesel volume will be compensated by growth in diesel demand in other regions of the world, according to the 2009 JD Power Global Light Vehicle Diesel Study."