Lowe has produced the 30-second spot, which explains that although the concept car featured in the film is totally impractical for everyday use, the technological know-how that went into it is now incorporated in its diesel cars.
Initiative is handling media planning and buying for the commercial, which breaks nationally on Tuesday and will run throughout the month.
It marks the first time Vauxhall has focused specifically on its engine technology.
Its strategy is intended to capitalise on rising diesel sales, which account for 30 per cent of the UK car market.
Car manufacturers such as Vauxhall have improved their diesel technology in an effort to destroy the lingering perception that diesel engines are noisy, smelly, dirty and slow.
The ad underscores this message by highlighting the shortcomings of Vauxhall's Eco VX220 concept car. The vehicle looks impressive, but its flaws are exposed when a pregnant woman struggles to get out of it. A car wash and a speed bump also demonstrate the car's impracticality before a voiceover explains that Vauxhall's diesel range contains the same technology in a more practical package.
The film was written and art directed by Tom Hudson and Lee Goulding.
It was directed by Peter Cattaneo through Academy Films.
Damon Collins, Lowe's executive creative director, said: "Most car ads are po-faced and take the business of motors and motoring seriously. This campaign adopts a much lighter tone of voice."