Diesels driving on in 2018 despite new tax

Singapore

DIESEL isn't disappearing just yet and there are even some bargains to be picked up now.

Some distributors will still be offering diesel models next year despite the heavy penalties set to be imposed by the upcoming Vehicular Emissions Scheme (VES).

Cars with turbodiesel engines can currently enjoy Carbon Emissions-based Vehicle Scheme (CEVS) rebates of up to S$30,000. But these will vanish when VES comes into effect on Jan 1, 2018, when they could be replaced with either a S$10,000 or S$20,000 surcharge, thus potentially raising prices by as much as S$50,000. As a result, dealers with existing stocks are dangling very attractive discounts.

CEVS measures only carbon dioxide but VES is more stringent and includes four other pollutants - hydrocarbons (HC), carbon monoxide (CO), nitrous oxide (NOx) and particulate matter (PM).

Turbodiesels are vulnerable as they score high on NOx and PM. This is despite being more fuel-efficient than similarly sized turbocharged petrol engines, and having better low-end torque. These two attributes translate into ideal performance under certain conditions and have won diesel its diehard fans.

A representative for authorised Porsche distributor Stuttgart Auto said it will "not be totally stopping'' sales of diesel models such as the Macan S Diesel, Cayenne Diesel and Panamera 4S Diesel.

Of the three, the most popular is the Macan S Diesel, a sports luxury SUV which is currently listed from S$263,088 before options and COE. It now resides in the CEVS neutral band but will be slapped with a S$20,000 penalty next year.

The Stuttgart Auto representative explained: "Our line-up won't be completely diesel-free. There will still be a few diesel variants available because some people love the torque and mileage that these cars offer.''

Brands such as Land Rover and Range Rover are also big on oil burning and will continue to offer them beyond 2017. Models from the first brand generally have a neutral CEVS band or a S$5,000 to S$10,000 surcharge.

When VES kicks in, these should transition to a S$20,000 penalty. Recent advertisements have offered attractive prices for 2017 stocks of the Land Rover Discovery Sport.

Across the road at Renault, diesel models such as the Megane Sedan have been dropped but the Grand Scenic will be retained for different reasons.

The sporty seven-seat MPV with a 1.5-litre turbodiesel engine was launched about six months ago and is still new on the market. Also, no petrol variant is available.

Currently listed at S$124,999 with a CEVS rebate of S$15,000, the Grand Scenic is an unusual diesel because it will still attract a rebate under VES although it will be S$10,000, or S$5,000 less than before.

No decision has been made yet about its pricing from January but it is understood that distributor Wearnes Automotive considers the difference "negligible''.

Also driving into the new year is the Opel Mokka X with a 1.6 turbodiesel engine, which currently enjoys a S$5,000 CEVS rebate. Opel distributor Alpine Group's sales director David Pang declined to reveal its VES rating except to say: "Most of our diesels are in the neutral VES band.''

He added: "Many of our models will in fact have diesel engines, like the new Insignia and the Astra, because our diesel emissions are very good.''

The Insignia mid-sized sedan will be launched in December with a 1.6 turbodiesel, as well as 1.5 and 2.0 turbocharged petrol units. The Astra compact, which is already available with 1.0 and 1.4 petrol engines, will add a 1.6 turbodiesel.

But other European brands, including Peugeot and Citroen, have cleared their stocks and do not intend to bring in more.

Authorised Peugeot dealer Autofrance used to have the 508 sedan and 5008 MPV with a 1.6 turbodiesel but a source said: "Only our commercial models are now diesel.''

As for Citroen, agent Cycle & Carriage has dropped the 1.6 turbodiesel versions of its Grand C4 Picasso, DS5 and DS4 Crossback, and replaced the C4 Picasso with a petrol-engined C3 Aircross.