'The newfangled engine, dubbed VC-Turbo for marketing purposes, uses new electronics and software to continually choose an optimal compression ratio for combustion - until now a key factor in the trade-off between power and efficiency in a gasoline-fueled engine.

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Diesel's share is forecast to drop to about 17 percent.

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It is a level of performance and efficiency the conventional gasoline engine has so far struggled to achieve.

Kiga said the VC Turbo system costs thousands of dollars less than a comparable gasoline-electric hybrid car, although a VC Turbo hybrid could be in the offing.

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