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Diesel Boom? Ownership Of Diesel Cars Way Up, But Still A Fraction Of U.S. Market

This article is more than 10 years old.

Diesels are gaining in popularity, but they still have far to go before hitting mainstream status.

Registrations for diesel cars and sport utility vehicles rose 24 percent in the United States from 2010 through 2012, according to data compiled by R.L. Polk and Co. for the Diesel Technology Forum. This jump in diesels is nearly 10 times greater than the 2.75 percent uptick in overall registrations for cars and SUVs during the same time period.

The diesel registrations increased from 640,779 in 2010 to 796,794 at the end of 2012. (The numbers exclude the nearly 6 million diesel pickup trucks and vans used commercially.)

The growth is notable because it happened during a recession and at a time when U.S. diesel fuel prices have been at a historic high. Diesel costs about 10 percent more than regular gasoline on average, according to the most recent data from the U.S. Energy Information Administration.

The fact that relatively few diesel cars and SUVs have been available in the United States makes the growth in registrations all the more striking. Until recently, there were only a handful of models available stateside, some of the best-selling ones being the Volkswagen Golf TDI and Jetta TDI.

In Pictures: Diesel Cars And Trucks That Will Save You Money

But the choices are multiplying quickly. Diesel versions of several popular models will be hitting showrooms for the 2014 model year. These include the Audi A4, BMW 328d, Chevrolet Cruze, Jeep Grand Cherokee and Mazda 6. More are on the way for 2015 and beyond.

The Diesel Technology Forum projects that the number of diesel models on sale in the United States—now at 27—will more than double within the next two years.

Automakers are adding diesel vehicles because of higher Corporate Average Fuel Economy standards, which will climb to 54.5 miles per gallon by 2025. Diesel engines are 20 percent to 40 percent more fuel efficient than equivalent gasoline engines.

Proponents logically argue that going farther on a gallon of fuel more than makes up for the extra cost of diesel. But there are other downsides to diesels that, combined with the pricier fuel, keep U.S. consumers from embracing them more enthusiastically. The main one is that diesel vehicles cost more than their gasoline equivalents—generally several thousand dollars more. In most cases diesels also require complicated exhaust treatment systems to neutralize harmful emissions created as a byproduct of burning the fuel.

Despite the sizable uptick in registrations for diesels, they still only comprise a little less than 3 percent of the market.

The growth pace is expected to accelerate over the second half of this decade, though. By how much is a matter of debate. “Some analysts predict diesel sales will reach 10 percent of the U.S. market by 2020,” says Allen Schaeffer, executive director of the Diesel Technology Forum, a Washington D.C.-based nonprofit that advocates for diesel cars and trucks.

Hybrids are more popular with U.S. consumers than diesels. Polk found that registrations for hybrids climbed at a higher rate than diesels from 2010 through 2012, increasing by 33 percent, to a total of 2.3 million vehicles. Choices for hybrid buyers are also more plentiful, with 46 models on sale.

Top 3 States with Fastest Growth in Diesel Cars and SUVs from 2010 to 2012:

1) California                               +55%

2) Massachusetts                      +45%

3) New York                               +43%

Top 3 States with the Highest Number of Registrations for Diesel Cars and SUVs in 2012:

1) California                               84,106

2) Texas                                      64,272

3) Florida                                   49,838

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