Import car companies are consecutively launching new diesel models. Although the domestic automobile market has been restructured around electric vehicles and hybrid vehicles in recent years, import car companies interpret that there is still a significant consumer base prioritizing fuel efficiency and economic practicality, leading them to continue selling diesel vehicles.

According to the import car industry on the 11th, Volkswagen released the eighth-generation updated diesel model of the compact hatchback Golf, known as the Golf TDI, in March. Earlier this month, Audi introduced a new diesel-only model of its mid-size Sports Utility Vehicle (SUV) Q5. Audi also unveiled a diesel model of its mid-size sedan A5.

On the 1st, the new SUV 'The New Audi Q5' is being revealed at the Audi new car launch event held at the Grand Ballroom of Conrad Seoul Hotel in Yeouido, Yeongdeungpo-gu, Seoul. Q5 is launched as a single diesel model. /Courtesy of News1

Diesel cars were very popular in the domestic market until the mid-2010s. However, as major countries, including Europe, tightened emissions regulations, the popularity of diesel cars in Korea quickly declined. In particular, the revelation that some European automakers, including Volkswagen, manipulated emissions data in 2016 further diminished the standing of diesel vehicles.

According to the Korea Automobile Importers & Distributors Association (KAIDA), the cumulative sales volume of imported diesel passenger cars for the first half of this year (January to June) is 1,737 units, representing a 53.7% decrease compared to the previous year. In contrast, during the same period, hybrid vehicles (full, mild, plug-in, 83,841 units) and electric vehicles (32,420 units) increased by 33.2% and 20.2%, respectively.

In the import car industry, it is interpreted that companies like Volkswagen and Audi are persistently launching new models to target the now 'niche market' demand for diesel vehicles. An industry insider noted, "Diesel cars have advantages in terms of higher economic efficiency and effectiveness compared to gasoline cars," adding, "Recently, with the application of hybrid technology improving performance, many consumers are showing renewed interest in diesel vehicles."

Some in the import car industry suggest that companies are compelled to produce diesel vehicles due to contract terms with large parts suppliers, and they have chosen Korea as the market to absorb this volume. The reasoning is that Korea has less stringent regulations on diesel vehicles compared to Europe, considered the home of diesel vehicles, and there is a less negative perception.

In fact, the market share of diesel cars in Europe is continuing to decline. According to the European Automobile Manufacturers Association (ACEA), the share of electric vehicles among new cars registered in the European Union (EU) last year was 13.6%, surpassing that of diesel cars at 11.9%. The market share of diesel vehicles in Europe reached 50% in 2015, but has dropped to one-fifth of that in less than a decade.

On the 29th, cars are waiting to refuel at a gas station in downtown Seoul. /Courtesy of Yonhap News

However, industry insiders suggest that despite the consecutive new model launches, the significantly increased fuel prices and the indifference towards diesel vehicles will likely mean that sales figures for diesel vehicles in the domestic market will not noticeably increase.

At one point, the share of diesel vehicles in the domestic import passenger car market exceeded 70%, but it has now fallen to about 3%. Last year, the sales volume of imported diesel cars fell below 10,000 units for the first time in 17 years, since 2007, and it is projected that this year it will be difficult to exceed 4,000 units.

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