Is diesel making a comeback in Europe?
European diesel registrations fell from 50% market share in 2015 to under 10% in 2025. But new model announcements, relaxed EU legislation and shifting consumer behaviour suggest reports of diesel's death may have been premature
The decline in diesel registrations in Europe – diesel’s major market in passenger cars for many years – has been marked. From a share of c50% in 2015 to less than 10% in 2025 tells its own story. Originally taxed at a lower rate in many countries, the use of diesel was encouraged for its fuel efficiency but once its harmful emissions, especially of particulates, came to be recognised, the tax situation regarding diesel changed. The fuel became more expensive at the pump and governments’ messaging changed; diesel was bad, very bad in fact and while not perfect, petrol was deemed “better”, especially in hybrid form. And as the electric vehicle became a mainstream product, albeit an initially expensive one, the decline of diesel accelerated.
Available assets support diesel production
From a manufacturing point of view, vehicle companies – and suppliers alike – found they had underused assets, especially equipment which was dedicated to making only diesel engines and their components. Stellantis’ Pratola Serra engine factory to the east of Naples for example is primarily focused on producing diesel engines even today. The factory’s supply chain will consequently have equipment dedicated to producing diesel components and with declining diesel volumes, both the Pratola Serra plant and its suppliers will have seen declining utilisation and consequent inefficiencies in their operations. Any revival in diesel demand will clearly be welcome.
Elsewhere in the premium passenger market there are examples of diesel holding out. For example, in Germany the X5 SUV had a diesel share of over 50% last year
The move away from diesel is still seemingly unstoppable although in late 2025 a little reported event – at least at the time – suggested that diesel’s days may not be entirely numbered. The context for this is that Stellantis reported a significant write-down on its EV investments, especially in the US; the write-down totalled more than US$20 billion and while this may be passed off in large part as a paper exercise, there is an undoubted impact on Stellantis’ finances. Less money is available for investment and the pressure to generate more revenue from existing assets has undoubtedly increased.
Diesel’s reappearance in product line-ups
As a result, in late 2025 and early 2026, diesel versions of existing vehicles re-appeared on Stellantis’ websites and in dealer offerings. This is apparent across most brands, notably Peugeot, DS and Alfa Romeo. Vauxhall in the UK was reportedly due to offer diesel engines once again on some models although this is yet to appear on the brand’s website, despite press reports saying this would happen.
Across various European markets, diesel options for the Peugeot 308, Opel Astra and DS4 have (re-)appeared, and the diesel option is now available again in the UK on the 308. Also available again with a diesel option are the small Stellantis vans, i.e. Opel Combo, Citroen Berlingo and Peugeot Rifter; and amidst Stellantis’ premium models, the Alfa Romeo Stelvio and Giulia are offered once again with a diesel engine. Reuters described this development as a “previously unreported strategic shift”.
Press reports cite unnamed Stellantis officials attributing this change in direction as due to “sustained customer demand” for diesel, especially in the LCV and fleet markets where diesel offers vastly better range, payload and fuelling flexibility than EVs. Other vehicle companies with a strong LCV presence, for example Ford with the Transit Connect, have not needed to make the same strategic repositioning as Stellantis because they had not previously cancelled their diesel options.
Elsewhere in the premium passenger market there are examples of diesel holding out. For example, in Germany the X5 SUV had a diesel share of over 50% last year; and the closely related X6 had a diesel ratio of 78%. Diesels reportedly remain popular, for now at least, with fleet buyers of thee 3- and 5-series cars.
And although it is clearly an isolated case, the report of a senior German politician and his switch back to diesel on official business is an interesting case in point. Marcus Optendrenk, the finance minister for the state of North Rhine-Westphalia, has handed back his BMW i7 and replaced it with an Audi A8 diesel, a move which made national headlines in Germany. Herr Optendrenk justified this switch because of his large mileage driven across the state and the challenge of keeping adequate charge available on the i7. Several of his colleagues have also now made the same switch and the German press has used this as a symbolic, yet significant, justification to continue the anti-EV lobby which still prevails in some places.
If low-carbon fuels, such as e-fuel diesel (which Audi is understood to be developing), can be delivered on a commercial basis for diesel engines, then the death of the diesel engine may have been delayed a while longer
EV costs and changing legislation extend diesel production
The “revival” in diesel’s fortunes – or rather a stalling in its decline – is not yet universal. However, there are signs that in some cases, consumers still want diesels and vehicle companies will consequently oblige as they chase market volume and share, especially in a segment in which the otherwise all-conquering Chinese are absent. The relaxation of the EU’s outright ban on new ICE vehicles in 2035 means that a niche still exists, and will continue to exist, for “legacy” powertrains for a while longer.
If low-carbon fuels, such as e-fuel diesel (which Audi is understood to be developing), can be delivered on a commercial basis for diesel engines, then the death of the diesel engine may have been delayed a while longer. The idea of diesel once again reaching 50% market share is clearly a non-starter but retaining 5-6% share overall and quite probably more than that in some segments, is a real possibility. Stellantis, which needs all the revenue it can get right now, will regard diesel as a “free hit” for now, although if hostilities in the Middle East turn out to have a long-term impact on oil supply and therefore push the price of diesel up to £2 a gallon or more in the UK for example, then some potential diesel buyers may think again. “May you live in interesting times” is an oft-quoted Chinese proverb, which seems very apt for European powertrain trends.
