As new outlines have been made regarding diesel emissions, the automotive industry is scratching its head trying to work out what impact it will have on the sales and popularity of diesel vehicles.
These concerns originate off the back of Volkswagen's emissions scandal in September 2015. Because of this, the Department of Transport undertook an investigation and found that 37 of the top-selling diesel cars far exceeded the road legal requirements for pollution testing after a 90 minute drive.
But why is this a cause for alarm? Research has found that high levels of emissions are thought to have a direct correlation to the health and well-being of individuals. These figures have triggered a response by the government to begin offering a scrappage scheme with the aim of getting old diesel vehicles off the road. The scheme has proposed that a grant of between £1,000 - £2000 will be given to diesel cars manufactured before 2005 in order to for a new more eco-friendly model to be brought. It is thought that these changes could lead to a 40% drop in the value of diesel cars.
But what about fleet? Diesel accounts for 80% of all company fleet vehicles and around half of all retail vehicles bought. The diesel market share has already seen a drop, but to what extent? Industry experts predict a minimum of 5-10% drop in residual values in the next two years and a 15-20% drop over the next five years.
Only time will tell the true impact of these changes.
According to the Royal College of Physicians, air pollution across the UK is linked to around 40,000 premature deaths every year. The UK has struggled to keep within EU limits on some pollutants, particularly nitrogen dioxide (NO2), which is produced by diesel engines and is linked to a range of respiratory diseases, including asthma. Some 37 of the 43 regions of the UK are in breach of NO2 limits.