There are other countries in the world, and in some of those countries, there are significant numbers of diesel passenger cars.
http://www.bloomberg.com/news/articles/2015-09-23/no-cheatin...
Emissions and efficiency are usually conflicting goals. Automakers are under a ton of strain right now to achieve BOTH, which is essentially impossible. The VW TDIs are some of the only vehicles to even get close to the efficiency that will be required in just a few years, regardless of emissions.