J.D Power forecasts more diesel vehicles

Posted By on April 29, 2006

J.D.Power AwardAnother day, another comment about diesel vehicles — let’s just say that I’ve been smelling diesel fumes lately. According to J.D. Power Automotive Forecasting, the number of diesel vehicles is on the rise and is expected to double over the next 10 years. In 2005, worldwide sales of diesel vehicles were 15 million; the projection is that it will be 29 million in 2015.

Europe in particular has seen a huge increase in diesel cars as their fuel taxes are bias against gasoline as the price for fuel is nearly twice that of the US. In 2005, diesel ownership in Western Europe broke the 50% barrier as diesel technology continues to improve and offer an impressive balance of performance, comfort and efficiency. (see “When will we have Euro diesels?”) Sooner or later this will become obvious in Asia and North America especially if oil prices remain high.

According to Alastair Bedwell, senior manager for J.D. Power Automotive Forecasting, the diesel engine is “a proven, cost-effective and ‘off the shelf’ solution” and “the United States and Canada are markets with enormous potential for diesel light-vehicle sales.” In Asia, he sees South Korea and India as the key markets as well as China. The only country in the far east relucted to adopt diesel technology is Japan. Over the next 10 years , J.D. Power and Associates expects slower growth in Western Europe where the diesel car market is nearing saturation, although Eastern Europe is expected to continue to show demand for diesels.

Worldwide, Volkswagen is expected to remain the largest global supplier of diesel-fueled light vehicles and followed by Ford Motor Company. Toyota is expected to be the the fastest-growing global diesel new-vehicle provider from 2005 through 2015 which comes as a surprise, considering their leadership in gasoline engine technology as well as hybrids. If true, Toyota will most likely dominate the automotive business as the #1 automotive company?


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