Europe moves away from diesel: price increases inevitable

Europe moves away from diesel: price increases inevitable

Photo: Volkswagen

Not long ago, diesel cars were considered the best choice for frequent travelers — valued for their efficiency, endurance, and longevity. Yet today it has become increasingly clear that the diesel era is ending faster than expected. European countries are tightening environmental standards, cutting production, and introducing new tax policies that make diesel vehicles less attractive to buyers. As a result, prices for such cars could rise noticeably by 2026 — including on Ukraine’s secondary market.

The main reason lies in the fact that Europe remains the primary source of used cars imported to Ukraine. Starting in 2025–2026, the EU will implement new Euro 7 emission standards that will reshape the automotive industry. Manufacturers will have to invest billions of euros to upgrade diesel engines, significantly increasing their production costs. Some brands — including Renault, Peugeot, and Ford — are already reducing their diesel lineups, as building such engines becomes economically unviable. According to the European Automobile Manufacturers’ Association (ACEA), the number of diesel models is expected to decline sharply after 2025.

At the same time, several EU countries are raising taxes on diesel vehicles. In Germany and France, tax benefits have already been canceled, and some major cities are introducing environmental charges for high-emission cars. Old diesel vehicles are also being banned from city centers in Berlin, Paris, Brussels, and Milan — pushing many owners to sell or avoid buying new diesel models. Meanwhile, global carmakers are accelerating their shift toward electric and hybrid technologies. Volvo, Mercedes-Benz, and Volkswagen have all announced plans to phase out diesel engines in most of their models after 2026.

This transition could make diesel cars a rarity in just a few years — and scarcity inevitably drives prices up.

For Ukraine, this means a shrinking supply, as most imported diesel cars come from Europe. Demand, however, will remain strong, since many Ukrainian drivers still prefer diesel vehicles for their fuel efficiency and reliability. As a result, competition among buyers will increase, and prices — even for used models — are expected to climb gradually.

According to ACEA and analysts at AutoScout24, the share of diesel vehicles on the EU’s new-car market may drop by another 20–30% between 2025 and 2026. Experts advise buyers not to delay if they plan to purchase a diesel car for long-term use. The year 2025 may be the last when such vehicles remain relatively affordable — before they become a niche product only a few can afford.

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