Sales of diesel vehicles across Europe have risen in recent months, despite an overall slump in the car industry.

Figures from PricewaterhouseCoopers have revealed that diesel vehicles accounted for 49 per cent of the market across Europe during the final three months of 2005 and as interest in the vehicles continues to grow, it is expected that they will overtake petrol driven vehicles this year.

The statistics highlight the increasing demand for diesel-powered vehicles as governments continue to introduce tougher regulations on emissions.

However, it has been claimed that the extra costs involved in making diesels meet those tough emissions standards could restrict their overall penetration in the car market.

Chris Hibbs, UK automotive leader at PricewaterhouseCoopers, commented: "[Diesel vehicles] could potentially achieve 55-60 per cent of the total market but the extra costs of making diesels to meet tougher emissions requirements means buyers will still have to pay a premium over petrol versions."

He added that another important factor currently driving uptake in diesel vehicles has been the high price of oil, but if oil prices begin to settle, the European market could change.


Ÿ Adfero Ltd