SALES of VW diesel cars are off to a promising start here, says Volkswagen Group Singapore (VGS). Since it launched three diesel-engine models in July, the response has been 'satisfactory'. And though volume is still small, customer interest is healthy. VGS declined to give sales figures.
The diesel models - the Touareg R50 with a V10 TDI engine, the Touareg V6 TDI and the Polo BlueMotion - were introduced to coincide with a change in the special tax on such cars.
From July 1, the special tax structure for Euro IV private diesel passenger cars was reduced. Previously, a diesel car was subject to road tax plus a special tax that was four times the road tax.
With the revision, the special tax is based on a rate of $1.25 per cubic centimetre (cc) of engine capacity.
While a 1,600cc diesel car will now enjoy a 25 per cent reduction in special tax, its tax bill will still be bigger than that of an equivalent petrol-engine car. But the benefits are diesel's improved fuel economy and stronger acceleration.
VGS managing director Olaf Duebel says that the current diesel offerings range from a very sporty and very fast SUV (the R50) to a small, economical and eco-friendly hatchback (the Polo BlueMotion), with prices from $85,800 to $297,300.
'Volkswagen brought in diesel passenger cars because we wanted to share with our customers a technology that has been a huge success in Europe and some other Asian markets,' he said.
'I believe diesel has an advantage over compressed natural gas (CNG) because it offers low fuel consumption while not losing the fun element in driving.'
The number of cars that can run on CNG has soared this year. Many owners have retrofitted petrol-engine cars with CNG conversion kits because the gas is cheaper than petrol.
'Compared with a diesel engine, the efficiency of a petrol engine is lower, especially under part-load conditions such as when driving in a city,' said Dr Duebel. 'Lower efficiency leads to higher fuel consumption. A diesel car will need less fuel than a CNG car even if driving in a city.'
VGS is a direct dealership operated by Volkswagen. The German carmaker is Europe's biggest, with more than 60 per cent of VW models sold there being diesel-powered. Worldwide, VW sells more than two million diesel engines a year.
'In Germany, the diesel share for some models like the Passat is approximately 80 per cent,' said Dr Duebel.
According to him, VW achieved its market-leading position in the diesel segment because it was the first manufacturer to offer turbocharged diesel engines in the early 1990s.
'The Volkswagen TDI has become the best-known diesel brand in Europe,' he said. 'These engines educated people globally about diesel. The fuel consumption was extremely low compared to old gasoline engines, and low-end torque was absolutely new and impressive.'
Fifteen years ago, it was virtually unheard of to have maximum torque of 320 Nm in a family hatchback like the Golf, Dr Duebel said. 'Today our TSI petrol engines try to follow this successful diesel-TDI story - smaller displacement, high low-end torque, direct injection. As a result, Volkswagen cars are fun to drive and have lower fuel consumption.'
This article was first published in The Business Times on Oct 1, 2008.
