Europe's driver to grow more enamoured with diesel
17 May 2001: The European love affair with diesel is about to get more intense, according to the experts. New car diesel purchases will reach 40% by 2005, a new report predicts. The drive towards frugal diesels, spurred on by a combination of high fuel taxation in Europe and improved technology, has already benefited car makers Volkswagen and Peugeot/Citroen, the Schroder Salomon Smith Barney analyst group says.
The survey ties in with a recent forecast from Ford Ireland's Eddie Murphy (right) that over 40 percent of new Mondeos sold will be diesel-powered.
It says diesels will account for 42 percent of car sales by 2005, compared with 32 percent in 2000. Sales would reach 6.57 million in 2005, compared with 4.73 million in 2000.
But over the next five years the likes of Fiat, Ford and Toyota will show the fastest growth in diesel sales.
And supplier companies such as Delphi Automotive Systems Corp, Denso Corp, Siemens AG, BorgWarner Inc and Faurecia are seen as major beneficiaries of the trend.
New commonrail fuel injection technology has transformed diesels from being noisy, slow, and dirty to a point where it is often difficult to tell a diesel from the best petrol engines, except when the bills come in for fuel use.
Small and luxury cars will lead the way, such as the latest Audi A2 (left) and a new diesel-powered Renault Clio.
"We expect penetration in Europe's small car heartland to double to over 30 percent by 2005, adding half the forecast growth. Rapid diesel sales growth for luxury vehicles is also probable with new V6/V8/V10 engines planned," SSSB says.