Diesel Cars In Australia: What's The Percentage?

Diesel cars are a common sight on Australian roads, with over 2.6 million Australians driving diesel vehicles, accounting for about one-sixth (16%) of the country's car fleet. However, the popularity of diesel cars in Australia is declining, with new diesel sales decreasing and a growing preference for hybrid and electric vehicles. As of 2021, diesel vehicles made up 26.4% of the national fleet, up from 20.9% in 2016. While diesel cars offer advantages such as size, power, and fuel efficiency, they are also more expensive to refuel, with costs exceeding $100 on average. With a global shift away from diesel and petrol cars, the future of diesel engines in Australia looks uncertain, especially with impending diesel bans and emissions regulations.

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Popularity of diesel cars in Australia

Diesel cars are a common sight on Australian roads, with over 2.6 million Australians driving diesel vehicles, according to Roy Morgan Research. This represents about one-sixth (16%) of Australia's car fleet, while around four-fifths (80%) are petrol-powered. The popularity of diesel cars in Australia can be attributed to several factors, including the performance and efficiency of diesel engines.

Diesel engines are known for their size and power, offering more torque and better fuel efficiency compared to petrol engines. This makes them particularly popular for certain vehicle types, such as SUVs, 4x4 off-road trucks, and utes. In fact, more than two-thirds of 4x4 and ute owners surveyed reported that their vehicles ran on diesel. However, the high fuel costs associated with diesel vehicles cannot be overlooked, with diesel drivers facing some of the highest refuelling expenses in the country.

Despite the advantages of diesel engines, there has been a noticeable shift away from diesel cars in Australia in recent years. New diesel sales are on the decline, with a 12.5% drop in purchases from 2019 to 2020. This trend is likely influenced by the increasing popularity of hybrid and electric vehicles, as well as the shift towards more fuel-efficient options. In 2023, 52.6% of Australians surveyed indicated they were seriously considering buying a hybrid car, and 38.5% were contemplating an all-electric vehicle.

Additionally, global and local movements towards more sustainable transportation options are impacting the diesel car market in Australia. Several car manufacturers have pledged to move away from internal combustion engines, with General Motors aiming to be carbon-neutral by 2040 and phase out most internal combustion engines by 2035. Similarly, the Australian Capital Territory (ACT) has announced an end to petrol and diesel vehicle sales by 2035, and the implementation of Euro 7 emissions standards in Australia from 2025 will further tighten controls on pollutant emissions from diesel vehicles.

While diesel cars currently make up a significant portion of Australia's vehicle fleet, their future looks uncertain. With declining sales, rising fuel costs, and a push for more environmentally friendly alternatives, the popularity of diesel cars in Australia may wane in the coming years. However, it is important to note that diesel engines will likely still be utilised in other sectors, such as long-haul truck fleets and agricultural machinery.

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Diesel car manufacturers

As of 31 January 2021, diesel vehicles made up 26.4% of the national fleet in Australia, up from 20.9% in 2016. This equates to over 2.6 million Australians driving diesel vehicles. While diesel vehicles are still popular, their popularity is declining as hybrid and electric vehicles become more prevalent.

Several car manufacturers offer diesel vehicles in Australia, including:

• Ford: The Ford Ranger is a popular diesel-powered vehicle in Australia, and the company also offers diesel engines in its Everest and Ranger models.
• Mazda: Mazda Australia offers a plug-in hybrid version of the CX-80 with a 3.3-litre diesel engine and mild hybrid technology.
• Mitsubishi: The Mitsubishi Pajero Sport GSR and the Mitsubishi Triton are two models that offer diesel engines.
• Volkswagen: Volkswagen offers the California campervan with a turbo-diesel engine and dual-clutch automatic transmission. They also have a strong presence in the diesel vehicle market in Australia.
• Kia: Kia offers a 2.2-litre turbo-diesel engine in its Carnival people mover and other models.
• BMW: The BMW X3 is available with a diesel engine, and the company has not set an end date for internal combustion engines.
• Volvo: Volvo has announced a move to electric power, but it is likely that they will continue to offer diesel vehicles in the short term.
• Isuzu UTE: Isuzu UTE is known for its diesel vehicles, particularly its utes and SUVs.
• Mercedes-Benz: Mercedes-Benz once promoted its diesel vehicles, but it has started dropping them from its range.
• Toyota: Toyota is the market leader in Australia, with about 19% of diesel vehicles on Australian roads being Toyotas.

While the future of diesel vehicles in Australia is uncertain, with some states planning to ban their sale by 2035, diesel cars, utes, and vans are currently widespread. Manufacturers are also continuing to offer diesel options alongside electric and hybrid vehicles.

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Cost of diesel cars

As of 31 January 2021, diesel vehicles made up 26.4% of the national fleet in Australia, up from 20.9% in 2016. This equates to over 2.6 million Australians driving diesel vehicles.

The cost of vehicle fuel in Australia has been rising, increasing by 7.9% in the year to September 2023. This has resulted in higher costs for diesel car owners, with diesel cars being one of the most expensive types of vehicles to refuel, costing over $100 per tank on average. Specifically, the cost to refuel a diesel car in Australia was $103.04 in 2023, compared to an average of $73.10 for all vehicles. As of 30 June 2025, the price of diesel fuel in Australia was AUD 1.70 per litre, higher than the world average of USD 1.18 per litre.

Several factors contribute to the high cost of diesel cars in Australia. Firstly, the lack of local automotive manufacturing in Australia makes Australian vehicle buyers dependent on international markets, which can impact the pricing of diesel vehicles. Additionally, diesel fuel prices have been fluctuating and have seen increases over time, affecting the overall cost of ownership for diesel car owners.

The rising cost of diesel fuel has influenced consumer preferences, with an increasing number of Australians considering alternative fuel options. Surveys indicate that more respondents would opt for a more fuel-efficient car or an electric vehicle if fuel prices continue to rise. This shift in consumer preferences is also driven by the growing popularity of environmentally friendly vehicles, with hybrid and electric vehicles gaining traction in the Australian market.

Despite the high refuelling costs, diesel cars offer certain advantages that may contribute to their continued appeal to some consumers. Diesel engines are known for their durability and torque, making them suitable for various applications, including commercial vehicles and off-road driving. Additionally, diesel cars have higher fuel efficiency than petrol cars, which can offset the higher fuel costs over time, depending on usage patterns.

Electric vehicles vs diesel cars

As of 31 January 2021, diesel vehicles made up 26.4% of Australia's national fleet, up from 20.9% in 2016. This equates to over 2.6 million Australians driving diesel vehicles. Petrol-powered vehicles still dominate the market, with 71.7% of the national fleet. However, this figure has decreased by 1% since 2020.

In recent years, electric vehicles (EVs) have gained popularity in Australia. In 2023, 2.6% of respondents to a fuel consumption survey stated that their cars ran on electricity, a notable increase from 0.4% in 2022. Additionally, 38.5% of Australians are now considering buying fully electric vehicles, an increase of 11.3% in five years. This shift towards electric cars is driven by several factors, including the rising cost of fuel and environmental concerns.

One of the primary advantages of electric cars over diesel cars is their environmental impact. Electric cars produce significantly lower carbon dioxide (CO2) emissions than diesel cars. According to the European Environment Agency, the average CO2 emissions of a diesel car are 121.5g/km, exceeding the EU's 2020-21 target of 95g/km for all new cars. Electric cars, despite higher emissions during manufacturing, have been found to emit about half the global warming emissions of a gasoline car over their lifetime. They lack an internal combustion engine and do not emit harmful greenhouse gases from tailpipes, making them a more environmentally friendly choice.

Another advantage of electric cars is the cost of fuelling or charging. Diesel is the most expensive type of fuel due to higher taxation, with diesel car owners paying an average of over $100 per refuel in Australia. In contrast, electric cars offer very low charging costs, benefiting from the expanding infrastructure of EV chargers and the widespread availability of electricity. The average model with a 200-mile range costs around £8 to charge at home or £6.50 at a rapid charger for a 100-mile charge.

However, one drawback of electric cars compared to diesel cars is the charging time. Charging an electric car can take up to seven hours for overnight home charging, while rapid charging at a public station typically takes around 30 minutes. On the other hand, refuelling a diesel car is a quicker process, usually taking less than five minutes to fill up the tank. Therefore, for individuals who frequently travel long distances, a diesel car might be a more convenient option.

In conclusion, the choice between electric vehicles and diesel cars depends on various factors. Electric cars offer significant environmental benefits and lower fuelling costs but require more time for charging. On the other hand, diesel cars provide quicker refuelling but are more expensive to run and have higher carbon emissions. As Australia transitions towards a more sustainable future, electric vehicles are poised to overtake diesel cars in popularity, with an increasing number of Australians considering the switch to electric alternatives.

Diesel car bans

As of 31 January 2021, diesel vehicles accounted for 26.4% of the national fleet in Australia, up from 20.9% in 2016. This increase in registrations was reported in all states and territories, with Queensland, South Australia, and the Australian Capital Territory recording the largest increases.

In recent years, there has been a growing trend towards more environmentally friendly vehicles in Australia. The rise in popularity of hybrid and electric vehicles has led to a decline in the consideration of diesel vehicles. This shift is reflected in surveys, with an increasing number of respondents expressing their preference for more fuel-efficient or electric vehicles, particularly if fuel prices continue to rise.

To address the environmental concerns associated with fossil fuel vehicles, several countries and cities worldwide have proposed or implemented bans on the sale of new fossil fuel-powered vehicles or the use of existing ones. These bans aim to reduce health risks from pollution particulates, meet international greenhouse gas reduction targets, and promote energy independence.

While there is opposition to the ban from some car manufacturers and countries, the EU has taken a prominent stance with its commitment to achieving climate neutrality by 2050. As a result, the EU has agreed to ban the sale of new internal combustion engine vehicles by 2035, allowing only zero-emission vehicles, such as fully electric or hydrogen-powered cars, to be sold.

It's important to note that these bans primarily target car manufacturers and the sale of new vehicles. Existing petrol and diesel car owners will still be able to keep, drive, sell, and buy these vehicles in the secondary market until they reach the end of their lifecycle. However, they may face challenges such as rising fuel costs and limited access to certain zones, like the anticipated Clean Transport Zones in European cities.

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