By Samuel Ee

Chevrolet is convinced about the future of diesel as an emerging alternative fuel and as such, will introduce its first diesel-engined model in Singapore, the 2.0-litre Captiva Diesel sport-utility vehicle, next month.

Since the government cut the special tax structure for Euro IV private diesel passenger cars on July 1, 2008, only two makes have unveiled diesel models in their showrooms - Volkswagen and Alfa Romeo. The former has two Touareg luxury SUV variants and one Polo supermini, while the latter has the 159 sedan.

Chevrolet will be the third brand to offer a diesel model, and it believes that the Captiva SUV has more mainstream appeal.

"No other marque has yet come forth with a real diesel alternative for the general driving public,"

says Kittichai Jarusrojpoka, managing director of General Motors Overseas Distribution Corp (GM ODC). GM owns the Chevrolet brand, and GM ODC is the business unit of the giant carmaker.

He adds that currently, only the European brands have aggressively promoted cars with diesel powertrain technology.

"But because these cars are positioned as higherend models, they are priced higher than their gasoline counterparts in the premium segments," he says.

According to Mr Kittichai, the Captiva 2.0 diesel will cost "just slightly more than the petrol version",

with the final price to be released at its January launch.

The seven-seat Chevrolet Captiva was first introduced in Singapore in May last year with a 2.4-litre petrol engine. Mr Kittichai says that the two-litre diesel version will provide buyers with "a compelling alternative that is more costefficient in the long run and better for the environment".

The petrol-powered Captiva 2.4 costs $78,988 with an annual road tax of $1,681. On the other hand, the 2.0 diesel has a total annual road tax of $3,709 (road tax of $1,209 and special tax of $2,500).

But in spite of the higher tax, Chevrolet believes that it will be attractive to drivers who prefer better performance.

A diesel engine produces more torque than a similar-sized petrol engine, and hence, has superior acceleration.

At the same time, Mr Kittichai says that with the pump price of diesel at about 15 per cent below that of petrol, more people will consider diesel cars as a viable alternative, especially as more drivers are educated on the benefits of a diesel engine.

"We are targeting drivers who want to have the best of both worlds - the increase in performance and the fuel economy of a diesel," he explains. "The key to our success is to ensure that we continue our commitment to deliver innovative, quality products, and delight drivers with a wide range of cars that suit their lifestyle needs and choices."

He says that GM wants to lead the development of alternative propulsion. Diesel engines play an important role in its global advanced propulsion strategy as diesel has been identified as the next emerging alternative fuel.

GM currently offers 22 diesel engine variants in 36 vehicles lines around the world. It sells more than one million diesel engines annually.

In August, the carmaker announced that it would invest US$445 million to build a diesel engine plant in Thailand to provide Chevrolet and other GM brands with four-cylinder diesel engines.

The Thai diesel plant is part of the company's plan to promote fuel diversity. It has already made a major commitment to build hybrid cars and trucks, as well as electric vehicles like the Chevy Volt. In Singapore, Chevrolet also offers a sedan that can run on compressed natural gas, the Optra Magnum CNG.

For now, Mr Kittichai says that it is too early to talk about sales forecasts of the diesel Captiva. But he is confident enough to believe that there is room for a diesel variant of another Chevy model in the near future.

"I think the reduction in diesel tax will encourage the growth of this segment," he says.