Blog: Dave LeggettDiesel hybrids for Europe

Dave Leggett | 23 November 2006

While in China last week I heard conflicting things about prospects for diesel cars there. Some said that the poor quality of the diesel fuel at the pump is an issue while others said that wasn’t a problem.

But there is certainly no doubting the strength of the diesel car market in Europe and it’s something that suggests the gasoline-electric hybrid market here will not evolve as quickly as it is doing in the US. But the diesel hybrid could be another matter. The question is, how cheaply can the technology being developed by PSA and others be rolled out and at what sort of price will it hit the market?

There’s a chicken and egg aspect to something like this. If it really takes off, unit costs can come down – like they have gradually done for diesels – which could further stimulate demand. But the price point at which the products are first positioned is important in terms of initial market acceptance.

It would certainly be interesting to see the manufacturers’ assumptions on volumes and the timescale for the amortisation of the huge investments associated with something like this. 

RESEARCH ANALYSIS: Prospects for hybrids in Europe constrained by diesel


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