Europe’s love affair with the diesel car has well and truly ended. The latest sales data underlines a sustained fall in diesel’s share of the new car market, as only two out of every five cars now sold in Europe has a diesel engine. This compares with over half of all new cars back in 2015. While European demand for road diesel is buoyed by robust growth in the commercial sector over the next few years , overall road diesel demand in Europe starts to stagnate and fall after 2020, as the diesel car fleet enters terminal decline. This report provides an outlook for car sales in Europe, including the response to the Dieselgate scandal among governments, consumers and auto manufactures. While diesel’s green credentials have been undermined by concerns regarding the detrimental impact of diesel fumes on human health, the drop in diesel passenger car sales will still make it more challenging to meet the EU 95g CO2/km vehicle fuel efficiency target by 2021.