2 March 2017
Following Volkswagen's emissions disaster at the end of 2015 the spotlight has very much been on the trusty diesel engine. Demand for the diesel engine has declined, with recent figures showing a drop of over 4% in January 2017 in comparison to January 2016. Over the same period, demand for alternative fuelled vehicles has increased by nearly 20%, seemingly a sign of things to come.
Volkswagen's 'dieslegate' didn’t do diesel engines any favours in 2015, but with emissions and environmental change high on everyone’s agenda it will come as no surprise that demand has been falling for many months now. Begging the question, is it time to ditch diesel?
Several major cities in the world have vowed to ban diesel cars in the next decade and a group of London based doctors have applied for a ban in the capital, whilst Westminster plans to hit diesel drivers with additional charges in congestion zones from October 2017. In contrast, electric car drivers can enjoy a government grant of up to £4,500 on any new electric vehicle.
With increasing concerns over air pollution caused by nitrogen oxides from diesel engines, the government is keen to remove diesel cars from our roads by 2030. A diesel scrapping scheme has been put forward for government review. The policy suggests diesel car owners will be offered a discount to ditch their old vehicle for an energy-efficient equivalent. This scheme will in turn quickly help reduce pollution and increase the quality of air, especially in highly congested areas.
With the threat of additional government charges for diesel drivers looming, many drivers are left questioning their next purchase. Whilst dealerships with volumes of diesel vehicles could find a devaluation of their stock, due to a fall in demand, this in turn should be offset by the boost in new eco-friendly vehicle sales. Dealers will therefore need to keep a close eye on government’s intentions to ensure they are correctly positioned for market changes.
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