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German Carmakers Test Diesel Appeal in Japan

BMW and Daimler are hoping to coax Japanese consumers into considering diesels, which currently power less than 1% of the passenger car fleet there, The Nikkei reports.

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BMW and Daimler are hoping to coax Japanese consumers into considering diesels, which currently power less than 1% of the passenger car fleet there, The Nikkei reports.

Hybrids are by far the most popular "green" option in Japan, accounting for about one in five cars currently on its roads. But the newspaper says diesel sales are being stimulated by tax breaks, 10% lower fuel costs and operating efficiencies that are roughly 30% better than conventional gasoline-fueled vehicles.

Daimler, which currently offers three diesel-powered models in Japan, plans to add at least four more, including its M-Class SUV this summer, The Nikkei says. It adds that BMW AG will expand its diesel options in Japan from the X5 crossover to its 3 Series sedan later this year.

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