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Not sure how popular diesel is in Japan but I would prefer a 120D. The torque would make up for the lack of hp, especially in city driving.
Diesel atm is only limited and there is a stigma among many Japanese regarding diesel passenger cars. However, it looks like it might change.
Current diesel passenger cars in Japan:
-Mercedes Benz E350 BlueTEC diesel AVANTGARDE
-Nissan X-trail diesel (now with 6-speed automatic gearbox)
Right now, diesel passenger cars make up 0.1 percent of new cars in Japan. However, there are predictions that with better diesel engines, this could rise up to 15% by year 2015.