Japan Develops Oil-Burning Desire. A Bonsai Sized One

Bertel Schmitt
by Bertel Schmitt

There probably is no other major car market where oil-burners play less of a role than in Japan. Even diesel-averse Americans buy more. Excitement about brown diesel wagons notwithstanding, diesel-powered cars limp along at around 3 percent market share in America. In Japan, where diesel-powered cars were banned from the streets of Tokyo 14 years ago, and where they carry the onus of being smelly, their market share is below miniature one percent. In both markets, there are hopes for a big diesel turn-around.

In America, most of diesel’s featherweight is carried by Volkswagen which just doesn’t want to understand why diesels won’t sell in European quantities, where every other new car bought is a diesel. In Japan, Mazda bets big on diesel.

Mazda sells diesel versions of the CX-5 SUV in Japan, and also of the Mazda6, called the Atenza in the Nipponese market. Says The Nikkei [sub]:

“Their success encouraged Mazda to also equip its smaller cars with diesel engines. This year the company will add a diesel version of its fully remodeled Axela — sold overseas as the Mazda3 — and in 2014 will offer a diesel version of the fully remodeled Demio. The Axela will initially be equipped with a 2.2-liter diesel engine, but Mazda is developing a 1.5-liter engine that it plans to use for both the Axela and the Demio.”

The Demio is better known outside of Japan as the Mazda2.

Mitsubishi is planning to offer diesel-powered vehicles in Japan. Volvo will release a diesel car this year, and Germany’s Volkswagen plans to introduce a model in or after 2014. In addition, both Daimler and BMW plan to bring more diesel cars to the island nation.

Says the Nikkei:

“By 2014 at least 10 different models of diesel cars will be available, or double the present number. Overall annual sales, stuck below 10,000 units in fiscal 2011, are predicted to balloon to 200,000 to 300,000 units.”

Assuming the Japanese market remain what it was in 2012, this would be a take rate between 5 and 7.5 percent.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • RJM RJM on May 04, 2013

    The only new car my father owned was a 1955 Mercedes 180D he picked up at the factory while stationed in Berlin with the US Army. To hear my mother tell the tales, finding fuel in the States after his return was a real experience. I can't afford a MB or BMW. I would love to own a small diesel econobox. I frequently go on several-hundred mile drives. The problem is that as far as I know, my options in the US are limited to Volkswagen. Their spotty reliability and the negative experiences with their service department expressed by members of this site, and of Volkswagen-centered sites doesn't encourage me in that direction. Having a High-Pressure Fuel Pump fail off the beaten track in west-Texas or rural Oklahoma would be unpleasant. Apparently the other options (CX-5 above) are not much better.

  • CelticPete CelticPete on May 05, 2013

    Diesels have alot of hidden quirky issues - its not just that they don't do great in cold weather. But they don't produce alot of heat - so your car doesn't warm up fast when its cold. People claim the engines have alot of torque - but its an extremely narrow power band compared to a big gas engine or an even a modern turbo charged gas engine. Compare the power output of a 320d with a 328i (BWM) Both use 2.0l engines but the gas one is far more flexible coming on powerwise a touch earlier but producing power at a much wider range of RPM (the gasoline one). If you look at the dyno the gasoline engine is clearly better. Electrics will still produce power at high RPMs - its just that its way down. At about 6k they start producing so much less torque that power output falls. Even so they can function just fine driving round in the equivalent of 2nd gear all the time. Though the top speed suffers of course.

  • Lorenzo I just noticed the 1954 Ford Customline V8 has the same exterior dimensions, but better legroom, shoulder room, hip room, a V8 engine, and a trunk lid. It sold, with Fordomatic, for $21,500, inflation adjusted.
  • Lorenzo They won't be sold just in Beverly Hills - there's a Nieman-Marcus in nearly every big city. When they're finally junked, the transfer case will be first to be salvaged, since it'll be unused.
  • Ltcmgm78 Just what we need to do: add more EVs that require a charging station! We own a Volt. We charge at home. We bought the Volt off-lease. We're retired and can do all our daily errands without burning any gasoline. For us this works, but we no longer have a work commute.
  • Michael S6 Given the choice between the Hornet R/T and the Alfa, I'd pick an Uber.
  • Michael S6 Nissan seems to be doing well at the low end of the market with their small cars and cuv. Competitiveness evaporates as you move up to larger size cars and suvs.
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