Why Are Diesel Cars So Unpopular In The US?

Walk through any car park in Europe and you'll likely see diesel powered cars everywhere. But once you cross the Atlantic, that's not the case, as diesel cars are few and far between in the United States. While diesel vehicles have advantages like fuel efficiency, they're just not as popular with American drivers. Understanding why means digging into history, perception and other key factors that have shaped the U.S. car market.

General Motors' foray into diesel cars in the 1980's didn't go well, as many of the automaker's poor performing Oldsmobiles led people to believe that diesel wasn't a viable option. Many Americans felt that as a whole, diesel cars were too loud, smelled bad and polluted the air. It's a belief that persisted over the years and even though modern diesel engines are cleaner than before and last longer than gasoline engines, it's not enough to change that negative perception.

Then there's the cost of diesel cars, which can average around $2,700 higher than gasoline cars. Despite the fact that diesel is around 45% more fuel efficient than gasoline, drivers don't see much of a reason to spend the extra money upfront, especially since fuel prices vary. But hybrid cars, which can cost over $6,500 more than gasoline cars, are outselling diesel cars. It all goes back to perception, as hybrids are considered cleaner than diesel.

Diesel cars have historically been much more popular in Europe than they are in the United States. Much of that is due to emissions standards, which are stricter in America and apply to diesel vehicles, not just gasoline. But there are other factors in play as well.

Europeans are paying less than Americans for diesel cars and they're also paying less for diesel fuel because of a lower tax. This is thanks to the number of diesel cars on the road, which outnumbers gasoline cars. Drivers in Europe typically keep their cars much longer than Americans due to a smaller car market, making it a cost efficient move to just hang onto their more affordable diesels.

But similarly to the U.S., diesel cars are taking a hit in Europe thanks to the popularity of hybrid and electric vehicles. Between 2019 and 2023, diesel cars dropped from 89% of cars sold in Europe to 49% while electric vehicles increased 20%. Thanks to the European Union's move to ban sales of new fossil fuel vehicles by 2035, electric car sales will undoubtedly continue to rise.