BMW and Mercedes diesels invade Japan

That explains the partnership between Toyota and BMW re supplying diesel engines.

GT-I9100T ?

 

Japanese stay away from diesels? Maybe in cars but certainly not SUV's. We get plenty of diesel grey import SUV's from Japan over here - being a RHD country also. Toyota & Mitsubishi seem to be the main ones.

 

I'm sure it does just apply to cars. We do get some grey imported cars too but I can't think of any of those being diesel. In fact, the diesel engines used in Japanese manufacturer cars here in Europe appear to be designed and made here (Toyota & Honda for example). The SUV/4x4 grey imported models and the odd imported minivan are diesel and virtually all are automatic transmissions (which is why they are popular as grey imports). Also, grey import hybrids are a popular choice too, hence the odd thread on here with Brits suffering hybrid problems on a Toyota Estima etc.

 

Emission regulations may also be a factor. Perhaps, like the US, Japan is more lax on trucks, and their annual registration fees are lower on a diesel truck than a diesel car.

 

Emissions regulations are very clearly a factor and the article completely missed it. To paraphrase, it's Euro 6, stupid!

Euro 6 begins in 2014 but manufacturers are already ready for it. The changes introduced in Euro 6 mean that, ignoring any test cycle factors, the EU now matches Japan and exceeds the USA in all emissions requirements except NOx and Euro 6 also reduced the NOx levels. NOx is actually relatively cheap to control with a bolt-on SCR system that uses a urea solution. I know Mercedes uses SCR and overcharges significantly at their dealerships for what is actually a relatively cheap additive. It's also possible to blend the urea solution in with the fuel at the pump and that might happen in the future.

Euro 6 will caused a reduction in diesel mpg, although engineering improvements should gradually recover it, as it has in the past. Mazda's SkyActiv-D is particularly interesting since it aims to meet emissions standards without SCR.

Because the EU is the key diesel market, the change to Euro 6 means that it will be cheaper for manufacturers to meet the NOx-strict markets in Japan and the USA and that's why you're now seeing reports of new manufacturer activity in those markets. I think it's also one of the reasons why VW is so opposed to the new CAFE standards: their US diesel sales will be attacked on one side by more hybrids and on the other side by additional competition and without the diesel sales to offset their inefficient gasoline vehicles they'll end up with high guzzler taxes that will hurt their low-price sales strategy.