Be ready for more diesel cars on the road

  • Be ready for more diesel cars on the road

    According to a recent CNBC article, next year we can expect to see a lot more diesel cars on the roads across the US. The 2014 US model year should have double the selection of previous years, with 40 diesel models on the market by the end of 2014. Diesel SUV’s are likely to see the biggest increase in sales.

    For a long while, Volkswagen has had the majority of diesel models in the US. But GM is planning to offer new diesel models, as is Chrysler, Mazda, Nissan and Audi. Some experts predict that by 2018 diesel vehicle sales could represent 10% of all new vehicle sales.

    Diesel technology typically boosts mileage by 30%, helping auto manufacturers meet federal mileage regulations. These regulations require a combined 39 mpg fuel mileage rating in the window across their model offerings by 2025.

    Many diesel models can go 600 to 800 miles on a single tank, dramatically altering the behavior of gasoline consumers who stop to fill up twice as often as these models.

    What does this mean from a fuel price management perspective? First, it may be a good time to start planning to add diesel to your product offering if you don’t already offer it, especially if your stores are in an area where SUV’s and trucks are popular. Second, monitor the ratio of diesel fuel sales to gasoline fuel sales from a historical perspective, and see if the current sales trends are tipping the balance in the favor of Diesel. If it hasn’t started yet, depending on your markets, you’re likely to see the shift over the next five years and beyond.