"At the moment, with the way taxes are here, it's difficult to see the benefit in (it) for Australia, but certainly we have to look at it for export.
"For export you need a diesel. If you're going into Europe ... you need a diesel. That's what drives us to look at it.''
However, HSV's managing director, Scott Grant, says that trialling diesels engines doen't mean there'll definitely be a diesel HSV in the showrooms.
At this moment there is no program for a diesel, but we are evaluating it,'' Mr Grant says.
"In the large car market diesel hasn't really happened, so potentially there's local market upside to complement what we're doing. But obviously for Europe diesel is mandatory,'' he said.
"At the moment there's the budget to go and do the research,'' Mr Walkinshaw says.
"We have no program at the moment because you're not going to do a car line in the hope of export, you have to know there's a core market here at home.''