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It is a generally accepted fact that the advantage of diesel engines over their gasoline-powered counterparts is superior fuel consumption. However, attempts to use diesel engines as car powerplants have been hampered by the associated increase in toxic emissions. Research was carried out with the objectives of achieving the lowest fuel consumption for a diesel-powered passenger vehicle in the 1,590kg equivalent inertia weight class while also meeting the 2005 European diesel exhaust emissions standards (EURO IV). This paper starts with a description of the experiments on combustion and the results of the simulations and experiments using a visualization apparatus, followed by a description of the fuel consumption, emissions and power performance of the engine when fitted in an actual vehicle. To begin with, the relationship between engine displacement and fuel consumption was investigated.