" Despite current crisis: Diesel will stay key in OEMs' powertrain strategies, especially in Europe. "

"Diesel will still remain dominant in the upper vehicle segments but its total share in Europe will decline in the coming years."
The current debate about diesel will, however, further drive innovations in combustion and after-treatment of diesel due to increasing regulatory requirements and standards, and will enforce test cycle implementation aiming to reflect Real Driving Emissions (RDE). In order to fulfill RDE regulations, diesel will become cleaner (with emission levels similar to gasoline engines), but also more expensive.
The resulting cost increase will accelerate the substitution process from diesel to smaller gasoline engines, especially in lower vehicle segments. Diesel will still remain dominant in the upper vehicle segments but total diesel share in Europe will decline in the coming years.
OEMs therefore have to further accelerate alternative powertrain solutions. Suppliers have the opportunity to implement innovative solutions for the further control of diesel RDE, and should also step up their preparations for alternative powertrains. For further details please check our new publication on the “Diesel controversy”:
Temporary shock or paradigm shift in powertrain: the impact of the diesel controversy on OEMs and suppliers