Challenges & Impact
Discontinuation of diesel
In Europe, it is common to own a diesel vehicle as almost half of the total car sold in Europe were diesel vehicles. This is because the customers thinks that fuel efficiency is the biggest factor to consider when driving and the fact that the price of diesel is lower than petrol(Schipper, Marie-Lilliu et al. 2002). The corollary of better fuel efficiency is higher nitrogen oxide emissions. The fact that the popularity of diesel vehicles were increasing, the level of NOx increases too. Most of the Europe citizens have been exposed to levels of air pollution which the World Health Organisation (WHO) examined that it is harmful to health. The air polluted causes illnesses and premature mortality …show more content…
According to an industry consultancy, it is expected to decline from fifty-two percent of Western European Car sales to forty-four percent by 2022. Stricter stance on diesel fuel will be taken by the regulatory bodies and governments. In the future 5 to 10 years, further cities might announce plans for diesel bans or establish levies for diesel engines(Cue). This will lead to customers’ preference to shift from diesel to petrol. To overcome the forthcoming cost challenges, Original Equipment Manufacturer (OEM) will abandon diesel in order to focus on the development on petrol engines, alternative innovation of new drive trains or even larger diesel engines.
Competitors that might eliminate diesel cars/ reputation (new markets will open up for automobile suppliers) Such as electric cars, petrol, etc
More legal …show more content…
Emission tests became more stringent with the regulations which are required to meet and actual testing processes are need too. China has projected inspections into Volkswagen cars after the scandal was being exposed. The company recalled the affected cars such as Tiguan SUVs and four imported Passat B6 sedans to fix the engine software that cheated on the emission tests. A testing agency in India, Automative Research Association in India, has also started investigating on the possible infringement of pollution law on the same models that have breached the US rules. In 2017, Europe has planned to introduce the new “Real-world Driving Environment” (RDE) to ensure diesel vehicle delivers low emission on the road. It will be using Portable Emission Monitoring System (PEMS) to determine the amount of diesel NOx emitted. As announced that the current New European Driving Cycle (NEDC) will be replaced by Worldwide Harmonized Light Vehicle Test Procedures (WTLC) most likely in 2021. Therefore if there is a huge change in the pace of adoption, falling of oil prices might happen and the market which means there would be an increase in the market. Furthermore, due to the bad relationship between the regulators and the industry, the aspect of the new regulations are more likely to include lesser adjustment to automakers and make targets even harder to hit in
Discontinuation of diesel
In Europe, it is common to own a diesel vehicle as almost half of the total car sold in Europe were diesel vehicles. This is because the customers thinks that fuel efficiency is the biggest factor to consider when driving and the fact that the price of diesel is lower than petrol(Schipper, Marie-Lilliu et al. 2002). The corollary of better fuel efficiency is higher nitrogen oxide emissions. The fact that the popularity of diesel vehicles were increasing, the level of NOx increases too. Most of the Europe citizens have been exposed to levels of air pollution which the World Health Organisation (WHO) examined that it is harmful to health. The air polluted causes illnesses and premature mortality …show more content…
According to an industry consultancy, it is expected to decline from fifty-two percent of Western European Car sales to forty-four percent by 2022. Stricter stance on diesel fuel will be taken by the regulatory bodies and governments. In the future 5 to 10 years, further cities might announce plans for diesel bans or establish levies for diesel engines(Cue). This will lead to customers’ preference to shift from diesel to petrol. To overcome the forthcoming cost challenges, Original Equipment Manufacturer (OEM) will abandon diesel in order to focus on the development on petrol engines, alternative innovation of new drive trains or even larger diesel engines.
Competitors that might eliminate diesel cars/ reputation (new markets will open up for automobile suppliers) Such as electric cars, petrol, etc
More legal …show more content…
Emission tests became more stringent with the regulations which are required to meet and actual testing processes are need too. China has projected inspections into Volkswagen cars after the scandal was being exposed. The company recalled the affected cars such as Tiguan SUVs and four imported Passat B6 sedans to fix the engine software that cheated on the emission tests. A testing agency in India, Automative Research Association in India, has also started investigating on the possible infringement of pollution law on the same models that have breached the US rules. In 2017, Europe has planned to introduce the new “Real-world Driving Environment” (RDE) to ensure diesel vehicle delivers low emission on the road. It will be using Portable Emission Monitoring System (PEMS) to determine the amount of diesel NOx emitted. As announced that the current New European Driving Cycle (NEDC) will be replaced by Worldwide Harmonized Light Vehicle Test Procedures (WTLC) most likely in 2021. Therefore if there is a huge change in the pace of adoption, falling of oil prices might happen and the market which means there would be an increase in the market. Furthermore, due to the bad relationship between the regulators and the industry, the aspect of the new regulations are more likely to include lesser adjustment to automakers and make targets even harder to hit in