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Light duty diesel vehicles continue to win recognition and market shares in Europe due to their convincing economy, reliability and driveability features. The diesel boom finds a fresh rationale in the CO2 emission legislation to come, however, the competitiveness of diesel cars may be impaired in future in consequence of the progression of the exhaust emission legislation and its impact on vehicle cost. This paper reviews the technologies currently pursued on the side of the engine and its subsystems, as well as the exhaust gas aftertreatment concepts required to satisfy the European legislation. An integral system approach is suggested, aiming at an optimum match of vehicle design parameters, transmission gear and the engine including aftertreatment elements and control.