
DaimlerChrysler drove back into Japan's almost nonexistent diesel car market on Monday with a new Mercedes-Benz luxury model and urged rivals to follow suit in an attempt to expand the segment. In the country's first new diesel car launch in four years, the world's No. 5 auto maker stressed the fuel efficiency and eco-friendliness of diesel-powered cars, trying to counter widespread perceptions of diesels as dirty and loud...In 1990, diesel powered 6.4 percent of all new cars sold in Japan. But demand fell after a law in 1992 lowered limits on emissions of smog-forming nitrogen oxide...Diesel-powered cars now make up half the European market but their popularity has long since waned in Japan...But the trend may shift, research firm Yano has predicted a climb in diesel cars' share to 11 percent of Japan's passenger car market in 2015 from just 0.2 percent last year...more...
Related Reuters story: Japan makes plans for greener cars, batteries.