Motorists may be surprised by the announcement, which suggests vehicles with new generation diesel engines may be the preferred choice for those covering large distances.
The admission comes despite Mr Grayling recently announcing the government’s ambitious ‘Road to Zero’ strategy, aimed at boosting the EV industry.
The government’s own target for diesel and petrol vehicles is to ban their sale by 2040, before removing them entirely from roads by 2050.
READ MORE: Should I buy a diesel car?
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Mr Grayling suggested that drivers should decide which car to buy based on their circumstances and own personal usage.
He said: “If you are doing long distances on the motorway, maybe the new generation of diesel engines are the right option for now.
“My advice today is ask yourself what kind of motoring you are doing and find the right solution for it.
“If you live in a large town or if you are driving around in an urban area in a city in today’s world I would be encouraging people to buy an electric vehicle or a plug-in hybrid.”
IN OTHER NEWS: Government’s £400 million plan to boost the EV industry
Mr. Grayling’s admission comes after the unveiling of the ‘Road to Zero’ plan, a £400 million scheme that will enable the phasing out of petrol and diesel vehicles from UK roads over the next three decades.
In the plan, the Government targets that at least half of all cars on the road should be ultra-low emission models by 2030, including as many as 70% of new cars.
But Whitehall has insisted that cleaner, new generation diesel cars can play an important role between now and the 2050 cut-off date.
In line with this, Mr. Grayling stated that drivers should consider trading in their older, polluting models for newer, cleaner cars if they are able to afford it.