The diesel engine has been facing a decline in Europe ever since the scandal at the VW Group, and stricter emissions regulations are further contributing to its downfall. As a result, many automakers have stopped offering diesel engines in smaller cars. The latest sales numbers from the European Automobile Manufacturers’ Association confirm that the demand for diesel cars is on a downward trend.

Last month, in European Union countries, the market share for diesel cars decreased to 13.4 percent, down from 17.4 percent in June 2022. This decline in demand allowed electric vehicles to surpass diesel cars for the first time ever. Zero-emission cars accounted for 15.1 percent of the total market share, up from 10.7 percent in June 2022. Self-charging hybrids were also more popular than diesel cars, with a market share of 24.3 percent, while plug-in hybrid electric vehicles represented 7.9 percent of total demand, slightly down from 8.2 percent in June 2022.

Gasoline cars continue to dominate the market, accounting for more than a third of all sales at 36.3 percent. This translates to 379,067 cars, which is an 11 percent increase compared to June 2022. However, despite the increase in sales numbers, the market share for gasoline cars actually decreased from 38.5 percent to 36.3 percent due to the rise in popularity of electric vehicles.

Although diesel cars are losing favor in the European Union, there has been a significant boost in sales of diesel cars in Germany and Central European markets, with a 10.3 percent increase. In June 2023, Romania experienced the highest growth in diesel car sales compared to the same month last year, with a remarkable increase of 22.4 percent.

Overall, new car sales (across all powertrain types) in the EU increased by 17.9 percent during the first six months of 2023, reaching 5.4 million vehicles. However, this is still 21 percent lower compared to the same period in 2019, before the pandemic. The European Automobile Manufacturers’ Association highlights that supply chain disruptions are becoming less of an issue, although some models still have long wait times.

With the implementation of Euro 7 regulations in 2025, it is expected that automakers will accelerate the transition to electric vehicles, leading to a decrease in the availability of traditional internal combustion engine cars. The VW Group has already warned that B-segment cars may be at risk, as the stricter legislation may make it too expensive to adapt their engines to comply.

Starting from 2035, automakers operating in the EU will no longer be permitted to sell new cars that emit harmful emissions.