Diesel Economics 102: More Buyers Choosing Diesels
A new analysis by The Diesel Driver shows that diesel sales are not only on the upswing but, in some cases, are exceeding those of the petrol-powered equivalent model
In Diesel Economics 101, we looked at the price points for diesel-powered automobiles in the U.S. 
In Diesel Economics 102, we analyze current sales figures for these cars.
While the U.S. market for diesel-powered automobiles is nowhere close to the European market in size, where diesel sales comprise over 50% of the new-car market. Despite the fact that there are relatively few models available, diesel sales are on the rise.
In the U.S., where a comparable diesel model exists, such as in the case of the Audi A3 (A3 and A3 TDI) or the BMW X5 (X5 xDrive30i and x5 xDrive35d), 30% of buyers on average chose the diesel model, according to an analysis of 2009 new-car registration data released by Bosch, the company that developed and manufactures the common rail diesel technology used in most modern diesel autos.
The Bosch analysis shows that the average percentage of registrations for cars with clean diesel engines were:
- Audi A3 TDI: 20%
- Audi Q7 TDI: 30%
- BMW 335d: 8%
- BMW X5 xDrive35d: 17%
- Mercedes-Benz GL 350 BlueTEC: 18%
- Mercedes-Benz ML 350 BlueTEC: 13%
- Mercedes-Benz R 350 BlueTEC: 12%
- VW Jetta TDI (Sedan and Sportwagen): >49%
- Volkswagen Touareg TDI: 33%
As impressive as they are, these figures don’t even begin to tell the whole story.
The Diesel Driver’s careful analysis of the first four month’s of BMW’s diesel model sales shows that, in some cases, diesel sales are actually exceeding sales of the equivalent petrol-powered model.
Take for example, the BMW 3er Series. In the U.S., the BMW 335d is available only as a four-door sedan (internal code E90). In order to make an accurate comparison, its sales can only be compared to the 335i sedan.
For the first five months of 2010, 38% of buyers of 335-class BMWs chose the diesel-powered version. In April, 54% chose the diesel.
For BMW’s X5 Sport Activity Vehicle, 36% of buyers, over the same five-month period, chose the equivalent diesel model (the X5 xDrive35d) versus the petrol-powered offering (the X5 xDrive30i). In May, 85% chose the diesel.
It’s equally revealing to analyze at the percentage of hybrid-electric cars chosen when there is an equivalent petrol-only model. For calendar year 2009, only 8% of Camry buyers opted for the Camry Hybrid, a model that has been on the market far longer than most diesels. In the same period, only 10% of Ford Escape buyers purchased the hybrid model.
These impressive sales figures beg the question, when will European car makers start to offer more diesel models in the U.S.
BMW is one of several car makers that has announced its intention to bring more diesels stateside. In addition to the X5 diesel and 335d that are currently available, two more diesels will make it to these shores within the next 12 months including a 5er Series model, most likely the 530d. Jim O’Donnell, president of BMW of North America, recently promised that, “[B]y 2014, between 10 and 20 percent of our mix will be diesels.”
First off, I have a X5 35d and love it. I’m all for anything that promotes modern diesels but I think Jon left something important out.
“For the first four months of 2010, 40% of buyers of 335-class BMWs chose the diesel-powered version. In April, the last month for which complete sales figures are available, 54% chose the diesel.”
Wasn’t the eco-credit still going on? I think it was and it should have been mentioned that folks were buying these cars with a $4500 rebate. BMW couldn’t give away 335d’d prior to that. Not because they are a bad car, they are fantastic, but because American BMW customers weren’t willing/ready to pay the premium and take the plunge.
Tim, good to hear of your experience with the X5 xDrive35d.
this article is an analysis of sales data but the first sentence of the article links to and references Diesel Economics 101, which looks at the Eco Credit in great detail. I don’t think anyone would doubt the Eco Credit has played a role in the increased sales for BMW by the way but the Eco Credit has, for all intents and purposes, become part of the overall pricing at this point.
-Jonathan Spira, Editor
Jonathan, your personal credibility and experience with the BMW diesels got me to look at the 335d. The combined economics of taking European delivery and receiving the $4500 Eco credit was so convincing that my wife and I are taking delivery of two 335d sedans in July.
Missed that and stand corrected.
Thanks,
Tim
Did BMW even take into account that they subsidized diesel sales in the U.S. with a $4500 ECO credit?
I don’t think one can conclude that diesel sales have picked up when an artificial incentive is required to sell them. However, it is obvious marketing of diesels by BMW has picked up.
I have been driving a 335d for about six months and it is everything BMW promised. I personally would have traded a bit of hp for even better fuel mileage, but it makes entering the highway a piece of cake. Only downside is that I have to use a wad of paper towels when fueling the car because of all of the slobs who leave diesel on the pump handle.
Love our X5 35d. Swapped from a X5 3.0. Only two complaints: it’s still a little hard to find diesel stations (and often those that indicate diesel only have pumps for big rigs). Second, you can really feel the extra 250lbs of weight over the front dictated by the heavy lump of iron. I can live with the first issue but BMW needs to work on losing weight for their diesels.
Jonathan,
I really love reading your articles. You always find an interesting twist on the subject of BMW cars and European travel. As a 2011 335d owner (I met you briefly at the Welt on May 4, 2010) I look forward to reading more of your work in “Diesel Driver”.
Keep up the great work on my new favorite subjects. (Europe, BMW, and diesel powered cars.)
Hey Mark…..I have been driving diesels for years. I keep a pair of leather work gloves in the trun k. I put them on for every refueling. My hands never smell like diesel fuel. Hope this helps. My present diesel is a 2010 VW Jetta. I love it. Great car and wonderful fuel economy. A great vehicle and much less costly than the BMW. And the trunk is larger too. Holds many golf clubs.
[...] version. For more information, see “Diesel Economics” which looks at this trend – http://www.thedieseldriver.com/2010/06/diesel-economics-102/ Leave a [...]
I don’t think you should necessarily assume that a 335d owner only looked at 335i sedans. I didn’t buy my 335d because it had 4 doors. Actually I would have preferred a coupe and a manual transmission. But I wanted the diesel engine most of all, so here I am. I love it, but would have been thrilled with a 120d if they were available in the US.
I ordered a 2011 M Sport 335d sedan in April. Picked the car up June 11th. Still grinning from ear to ear. This car is a beast and I’m amazed how much I love it.
My lease ended on my 2007 E92 335i coupe and I was unsure what to do next. Drove a new N55 335i sedan/coupe, felt very similar to my last 335i. Drove a 2011 135i with DCT. Not for me. Saw that the M Sport Package was newly available for 2011 on the “d”, and since I was going to order that option no matter what, I decided to drive one. Keep in mind, I’m 27 years old and love BMW inline sixes.
WOW! I was instantly addicted to that tidal wave of torque and loved the much smoother automatic. My last 335i was nowhere near as comfortable and planted as the diesel is. The “d” engine felt much much stronger after driving the gasoline models. Naturally, I ended up preferring the superior power of the diesel and ordered one. It’s worth every penny BMW charges for it.
Le Mans Blue/ Oyster/Black Dakota Leather/ Glacier Aluminum. Fully loaded.
The MSRP was $57800
Eco Credit was $4500
Dealer Discount was $3300
Negotiated price was $50,000
Not factoring in the great fuel economy and gas savings, I got an awesome deal on an incredible machine with an engine that stands apart from the rest of the 3-series lineup. My friends have already begun to call my car a freak of nature and I’m proudly a believer in diesel power.
[...] Diesel Economics 102, we looked at 2009 figures for diesel sales versus comparable petrol-powered models as well as at [...]