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Will Diesel Vehicles Still be a Part of our Future?

In recent times, diesel fuel technology has been occupying the news in what are (mostly) unwanted circumstances. Headlined by the Volkswagen ‘Dieselgate’ saga, which just about spread to all corners of the world, several other auto makers have also come under scrutiny over concerns they may have installed diesel emissions cheating devices.

In the wake of the scandal, Volkswagen’s CEO even went as far as to say that the manufacturer would no longer be offering diesel vehicles in the US market. The company cited that money being spent to adhere to increasingly stricter regulations could instead be better utilised by serving future technology, such as electric vehicles.

While the remarks were not necessarily aimed at the local car market, it’s not unreasonable that changes occurring in the US market would flow down under. After all, major cities in Europe, and even places like Mexico and India are already planning to take action in some form to discourage the use of diesel powered cars. One example even sees the UK mulling the idea of a trade in system for diesel cars in pollution ‘hotspots’. Meanwhile, the European Union’s industry commissioner has also suggested the phasing out of diesel vehicles could be faster than anticipated.

Given Australia is generally a follower when it comes to the automotive market, one has to wonder – will a change be forced upon local motorists to move away from diesel vehicles?

Across the last decade, it’s estimated that the number of diesel vehicles on the road has more than doubled – today contributing one third of new car sales. As well as environmental issues, the sales growth comes despite health professionals talking about the risks associated with this type of fuel technology. Most concerning, doctors are focusing on the levels of nitrogen oxide being emitted from these vehicles, widely regarded as contributing factors to respiratory illnesses and even cancer.

What’s also evident is the relative ‘strength’ in diesel car sales is being fuelled by the Australian obsession with diesel powered SUVs and utes. It’s in these categories where diesel sales have surged, despite a modest decrease in the proportion of passenger cars sold which are powered by diesel. Compared with the dynamics of other markets, particularly those in compact European cities, or heavily polluted mega cities in Asia, Australia sees a far greater volume of SUVs on our roads.

With a clearly established taste for larger vehicles, it seems Australian motorists will for now continue to place a greater emphasis on the prospect of a greater driving range afforded by diesel. The fuel technology, for all its health hazards, is perhaps being overlooked by authorities given the sprawling nature of our cities and lower population levels. It’s also unlikely that until such time that alternative fuel technologies like hydrogen and electricity become mainstream, and are even tailored towards our local taste for SUVs and utes, then we may have accepted our differences from the rest of the world.

Let’s also not forget, the Australian government earns a sizeable chunk of money from its excise tax on diesel. Will they be taking a slice of margins once alternative fuels becomes readily available? Maybe they’ll find a way to recoup a portion – but it’s hard to imagine they have an incentive to fast-track these changes.

One comment

  1. David Pearn says:

    Euro6 diesel emissions are vastly lower than those from the older ones from the previous decade.

    June 26th, 2017 at 11:07 am