20 July 2005

Diesels to cost more

by Brian Byrne. Diesel engines are expected to cost up to 25 percent more in five years because of stricter emissions regulations, compared to a marginal increase in the cost of petrol engines over the same period.

London-based analysts CSM worldwide estimate a 500 increase in cost on the typical 4-cylinder common-rail diesel, compared to a 100 increase for an equivalent petrol engine.

Diesel engines can already cost a third more to build than petrol ones, though there's often no difference between direct injection petrol and diesel equivalents -- but the projected increased cost structure will make the diesel less attractive even in these cases.

The situation is expected to trim the strong growth of diesel penetration in Europe, which currently stands at an average of around 50 percent of all sales.