Is diesel making a stealthy comeback? Why one big brand is swapping diesel in to make up for lackluster electric car sales

As the global car industry continues to play Whack-a-Mole in attempting to monitor and predict new car buying behaviour, the world’s fourth-largest carmaker, Stellantis, has upped the ante with a significant bet on diesel power in European markets.

A Reuters report published this week shows that “amid disappointing EV sales” the multi-brand giant “is resurrecting diesel versions of at least seven car and passenger van models across Europe”.

Positioning the move as driving a competitive advantage over hybrid and EV heavy Chinese challengers, a Stellantis spokesperson told Reuters, "We have decided to keep diesel engines in our product portfolio and - in some cases - to increase our powertrain offer.

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"At Stellantis we want to generate growth, that's why we are focused on customer demand," they said.

There are 14 core brands under the Stellantis umbrella - Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall.

Products including passenger vans as well as the Peugeot 308 and premium DS N°4 hatch have picked up diesel powertrain options as EV sales have softened and timing of EU emissions mandates has been extended.

Stellantis will also continue to offer diesel-powered versions of the DS7 SUV as well as the Alfa Romeo Tonale, Stelvio and Giulia "in response to sustained customer demand".

2023 Alfa Romeo Stelvio

2023 Alfa Romeo Giulia

2026 Alfa Romeo Tonale

2023 DS7

2026 DS No4

2026 Peugeot 308

According to the report, as recently as 2015, diesel vehicles made up at least 50 per cent of new car sales in Europe but data from European car lobby group ACEA show diesel vehicles made up just 7.7 per cent of new car sales across the continent in 2025 (with pure EVs at 19.5 per cent).

The sharp decline also follows some of the world's largest carmakers having been found to have manipulated emissions tests a decade ago.

At the same time, the US Federal Government has eliminated car and truck tailpipe emissions standards opening up scope for increased internal combustion powertrain options in Stellantis’ largest market, especially towing- and load-focused pick-ups like the 320kW/1457Nm Cummins turbo-diesel powered Ram Power Wagon.