Irreversible diesel declines or “safe haven” market opportunities?

Policy & Regulation

Stringent emission regulations, which will come into force in 2021, present significant challenges for diesel powertrain component suppliers and OEMs around the globe

Diesel, as a choice of fuel for light duty vehicle powertrains, has globally witnessed a fall in demand since 2016. IHS Markit forecasts the production of diesel powertrains will decline globally by about 3% in the period 2018-25. One of the key regions that will lower the global count will be Europe, where the decline during the period is seen at above 7%. The diesel emission scandal in late 2015, along with air quality concerns, had a considerable impact on the perception of diesel in the minds of European consumers, who are now increasingly adopting gasoline and electric propulsion powertrains instead.

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