Daimler Chrysler has announced its intent for a significant move in to the Japanese diesel market with the launch of its new E Class Mercedes vehicle.

The E Class and its diesel variant, the environmentally friendly E320 CDI, were unveiled at a special launch in Tokyo on Monday.

The German manufacturer hopes to capitalise on the anticipated growth in the Japanese diesel sector, spurred on by the fact that diesel is some 20 per cent cheaper than petrol in the country.

Last year, just 0.2 per cent of cars sold in Japan were diesels, but this figure is expected to rise to 11 per cent by 2015, according to the Yano Research Institute.

With new emissions standards set to be introduced in 2009, some experts believe that a flood of new diesels could arrive in Japan, competing for the eco-friendly market with the new hybrid variety cars.

The vehicle's "Clean Diesel Technology represents a milestone for the automobile market in Japan", said Hans Tempel, president of Daimler Chrysler Japan.

The only diesel model currently available in Japan is the Toyota's Prado Land Cruiser SUV after Daimler withdrew its previous diesel offering in 2002.


Ÿ Adfero Ltd