Germany experienced the largest year-to-date decline in diesel car demand to May of this year, its total of 248k being 50k fewer than sold in the same period in 2024. Italy and France were the other major contributors to the region’s 155k decline in diesel demand in the first five months of 2025.

In all, 582k diesel cars were sold to May, versus 737k in 2024. The modest uptick in BEV demand across much of the region has impacted ICE sales but there is also a notable increase in demand for gasoline hybrids, with several OEMs looking to solidify their offering in this area. For instance, we recently heard that VW group is intending to develop full hybrids. We have anticipated this move for some time, but recent news seems to indicate a more committed approach to this propulsion type from European carmakers.

Source: GlobalData

In early June, average fuel prices across Europe (including the UK) were €1.44/litre (diesel) and €1.51/litre (gasoline). Historically this is a small price advantage for diesel fuel, the cost of which has increased relative to gasoline as demand has decreased and the refinery ecosystem has altered. 

Source: GlobalData
Source: GlobalData

This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.

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