A recent report published by UBS has forecasted diesel engine vehicles will almost disappear from the global market within the next ten years as it currently faces a disastrous situation from a combination of competition from electric cars and a negative perspective leading to tougher regulations. As competitors are vying for a share of the electric car market, the technology and means of production has driven the cost down for electric and hybrid vehicles. Tesla has created their network of super fast charging sites across the United States and Canada, while the competition has teamed up to produce a similar network in Europe, in addition to the operational range provided by new age cell batteries has made electric cars a practical method of long distance travelling. All the advantages diesel engine vehicles had as the alternative to natural gas engines has been replaced by the electric car. Plus the price advantage of fuel for diesel vehicle has been quickly replaced by the deepening resentment from the public due to the backlash of the Volkswagen scandal. UBS has predicted the automaker its fall from grace as its global share of car sales fall from 13.5 percent to just 4 percent by 2025.
The bank further predicts that the diesel engine will lose its grip on the European market as its sales will decline from 50 percent to just 10 percent. The decline of the diesel engine has always been in decline since 2012 but has accelerated in the past year due to the fallout of the Volkswagen scandal. The Volkswagen scandal erupted last year in September, when the United States Environmental Agency issued a notice of violation of the Clean Air Act to the German automaker. The agency had found the automaker had intentionally programmed their diesel engines to activate certain emissions controls during laboratory emissions testing but would actually emit up to forty times the emissions in real-world driving conditions.
As some automakers are still debating if diesel engines are still viable for the future, others had invested billions into the electric car in order to meet tightening government regulations from most developed countries. Diesel which emits twenty percent less CO2 than petrol equivalents is no longer considered a greener solution as it also emits nitrogen oxide which has its own regulations. UBC predicts a mild form of hybrid vehicles will overtake diesel engine vehicles sales globally by 2021 and to account for 25 percent of cars sold by 2025. This mild hybrid vehicle will combine a small petrol engine with a large battery and will offer similar fuel economy and performance to diesel while eliminating nitrogen oxide emissions. However, they also predicted diesel will still remain dominant in trucks and large SUVs.