China's diesel vehicle population explosion

Diesel Fuel News, Jan 20, 2003

By 2005, diesels will account for 35% of China's new vehicle sales, up from 29% three years ago, according to Infineum, the worldwide maker of fuel and lubricant additives. Diesel trucks are replacing old gasoline technology, according to latest issue of Infineum Insight. Cummins and Cat are the leading foreign-based engine makers with China joint-ventures, while Iveco, Isuzu, Volvo and DaimlerChrysler are "starting to make ground." Passenger cars (almost all gasoline) are 30% of China's vehicle sales now, with Volkswagen holding nearly a 50% market share.

VW has complained of poor-quality diesel fuel in China, probably explaining the current lack of diesel car offerings. But China aims to slash diesel fuel sulfur and make other quality changes (see Diesel Fuel News 1/21/02, pl). According to a separate report from Interfax China Business News last month, China aims to announce new urban diesel standards by March. Diesel sulfur content for urban vehicles would be c apped at 500-ppm by July 1, 2004; cetane number would rise to 49.