Irreversible diesel declines or “safe haven” market opportunities?
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.