In the light commercial vehicles (LCV) market, primarily cross-country 4-wheel drive station wagons and derived cargo vans, diesel powered vehicles have been gaining popularity among customers because of their increased fuel economy.In the Japanese market particularly, total sales of such types of vehicles have been rapidly growing. The volume is about 3 times larger than the last five years with diesel engines having a steady share of about 90 percent. Under such circumstances the customers' requirements for diesel vehicles are becoming more severe. Their primary demands have been for increased power, low noise, low vibration and clean smoke, similar to those found in gasoline engines.On the other hand, the exhaust gaseous emission regulations of the diesel engines are getting strict and will become very severe in the near future.We, MITSUBISHI MOTORS CORPORATION, have been producing a 2.5 L 4-cylinder diesel, the 4D56 Series, for the LCVs. However considering those requirements, we have developed the 4M40 Series. This completely newly designed 2.8 L 4-cylinder diesel engine was launched in July '93, installed into the “NEW PAJERO”.This paper describes the design features of the 4M40.