Yes, diesels are very popular here.

In the period when W123s were current, diesel cars in the UK were of minority interest - most car diesel engines of the time were rather poor - I was considered odd at the time for running a Vauxhall diesel (a GM brand in the UK). Through the 90's, diesels became really popular, and on the MB web forums in the UK, we're now seeing people asking lots of questions about the common rail diesels, the CDIs.

It made sense for me to run a diesel car, as my father ran a repair garage, MOT station, and haulage yard - we kept our own bulk diesel supply. He had 12 trucks, about half of which were British, and half were MB - most of my MB experience is working on heavy trucks rather than cars.

I run a 1995 E300D W124, and am still considered odd, as it's by far the oldest car in our neighbourhood that's in daily use.