The demise of diesel appears to have been exaggerated.
Having fallen out of favour with both car makers and regulators, as well as taking a hit in the eyes of customers, in the wake of the Volkswagen emissions scandal, turbo diesel engines look set to live on.
Stellantis, the multi-national conglomerate that owns Alfa Romeo, Fiat, Peugeot, Citroen, Opel, Jeep, Ram and more, is reportedly planning to bring back diesel power to several models across its portfolio in the wake of lacklustre electric vehicle (EV) sales.
Reuters reports that Stellantis will put diesel power in the Peugeot 308 hatch, DS 4 hatch and Opel Zafira van and potentially other models. This follows Stellantis’ decision to revive the Hemi V8 in its US-built Ram pickup trucks, after US government regulation changes made it possible again.
Crucially, diesel is a strength for Stellantis, with decades of knowledge designing and building the oil-burning powertrains, which will make them cheaper and easier than the more complex EVs that the company has struggled to nail.
“We have decided to keep diesel engines in our product portfolio and – in some cases – to increase our powertrain offer,” a Stellantis spokesperson told Reuters.
“At Stellantis we want to generate growth, that’s why we are focused on customer demand.”
However, sales of diesels have dropped dramatically in recent years. Since Volkswagen was exposed cheating the emissions testing in 2015, diesels went from making up approximately half of European new vehicle sales to less than 10 per cent in 2025.
Diesel remains much more popular in Australia, though, accounting for roughly 30 per cent of all new vehicles sold in 2025, primarily due to the success of the dual-cab ute although it is also still a common option for SUV buyers.
The likes of the Ford Ranger and Everest, Toyota HiLux and LandCruiser and Isuzu D-Max are amongst the most popular diesel models. Many brands have tried to shift away from diesel in favour of hybrid powertrains, one of the most notable being Stellantis’ own Jeep, but it appears that there is still some way to go before diesel can be dismissed.
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