Through the end of July, sales of diesel vehicles in the United States were up 38.5 percent, compared to the same seven-month period in 2010. Led by the Volkswagen Jetta TDI and Golf TDI, diesel vehicles appear to have escaped the quake-related supply issues that crippled hybrid vehicle sales for months, though they're tally of 8,653 vehicles sold in July still only represents 0.82 percent of the total market.

Sales of the segment leader, the Jetta TDI, were 5,206 last month, bringing the diesel sedan's year-to-date total to 56,717. The oil-burning Golf didn't enjoy nearly the same level of demand, but its sales of 966 units in July landed the hatchback in second place among all diesel vehicles. In third, with sales ringing in at 562 units was the diesel-fueled BMW X5 xDrive35d.

 

Isn't saying that auto diesel sales are up something like saying that US quinoa consumption is up by 45%? It is a good increase over what it was, but the percentage as part of the market is still too low to be a major player yet. It would be nice if it does continue to do well though.

 

The US better get its refining capacity for diesel up if diesel powered cars continue on this trend. Our refining capacity is geared almost completely toward producing gasoline which currently leads to the somewhat increased price of diesel.

If demand skyrockets and diesels are unable offset that cost through fuel savings then you'll see sales being curbed.

One could always say the simple answer is to build more refineries but I think due to regulatory compliance, the last new refineries were built in the 70's or 80's.