Nissan has just confirmed that the company is set to gradually withdraw all diesel powered models including the X Trail in Europe. This announcement follows a similar decision that was made by fellow Japanese manufacturer Toyota. So, what does this decision mean and will it have implications for the Australian market?
The news was confirmed by a Nissan spokesperson and stated that it was due to slowing sales. However, customer anxiety about future tax rises, restrictions, and diesel bans also played a role. The spokesperson said that Nissan, like other manufacturers, can see a progressive decline of diesel, but there is no anticipation of a sudden end.
At this point, there is still a demand for diesel engines, and these will continue to be part of the powertrain offering at Nissan. However, Nissan is planning for a change in the future.
The Diesel Replacement
Nissan has stated that Europe is where their diesel sales are most concentrated. However, with the looming changes, axing diesels including the diesel variants from the Nissan X Trail 2018 range, will allow the brand to concentrate on electric vehicle development. The spokesperson said that Nissan’s electrification push would allow the brand to gradually discontinue diesel from the passenger vehicles. This will occur when each model is renewed, so diesels will gradually disappear from the Nissan lineup.
The European Impact
According to a Bloomberg report, Nissan sold 128,456 diesel units in Europe in 2017. This equals approximately 16 percent of Nissan deliveries in this region. A Reuters report claims that the axing of diesels will mean that Nissan could lay off hundreds from its Sunderland facility in the UK. This is attributed to falling diesel sales, and this was supported by the decision to close UK manufacturing by Jaguar Land Rover.
It is also thought that other Japanese manufacturers including Mazda and Honda could soon follow suit as a reaction to the tougher emissions in European legislation. The legislation changes have come about amidst the saga of the VW Dieselgate, and some manufacturers have determined that it will no longer be viable to offer diesels in Europe.
The Effect on the Australian Market
The European announcement is not thought to have a massive impact on the Australian market. Here, Nissan only offers a limited range of diesel models, specifically the Navara and Nissan X Trail. The Qashqai was previously available in a diesel variant, but this UK built model ditched the diesel when it had a facelift last November. This decision could be good news for us, as brands start to focus on EV development, that may appear in our marketplace in the years to come.
If you would like to know more about the Nissan X Trail, Perth drivers should call in and see us. We have an impressive choice of models including the Nissan X Trail 2018 range. You’ll also find the Perth City Nissan team ready to answer any queries about the Nissan X Trail, price deals, and current offers.