Toyota Australia Says Diesel Has Another 10 Years Before Being Replaced by Hydrogen and Petrol in the Long Run

Sean Hanley, Toyota Australia’s vice president of sales, marketing and franchise operations, told the media: “Diesel isn’t going away in the next decade, but beyond that I believe hydrogen will take over.” He added that while diesel remains popular in Australia, he doesn’t see it as a long-term fuel of the future, since petrol vehicles can do everything diesel can—and more.

Toyota’s best-selling model in 2023 was the diesel-powered HiLux, but in 2024 it was overtaken by the RAV4, which is sold exclusively as a hybrid. Toyota has also announced that the next-generation RAV4 plug-in hybrid will arrive in 2026, alongside a hybrid version of the LandCruiser 300 Series to replace the current diesel-only model. In 2024, Toyota Australia transitioned nearly all of its passenger cars and urban-oriented SUVs to hybrid-only lineups, leaving only GR-branded hot hatches and sports cars with petrol power. Commercial vehicles and off-roaders, however, continue to rely on diesel.

Between January and the end of August 2025, Toyota sold 163,491 vehicles in Australia, of which 79,132—or 48.4%—were diesels. These included the HiLux, LandCruiser, Prado, Coaster bus, Fortuner SUV, Granvia people mover, and HiAce van. Hanley noted that diesel and turbocharged petrol engines will still be needed for specific applications, but in the long term—particularly beyond 2035—he believes hydrogen vehicles will take over, thanks to their cleanliness, range, improved infrastructure, and affordability.

Toyota has been a leader in hydrogen in Australia, alongside Hyundai, introducing the Mirai fuel-cell vehicle in 2020, though it was not sold to the general public. The company also built 10 HiLux FCEVs for testing in the UK in 2024 and developed a prototype hydrogen HiAce van for Australian media tests in 2023. However, neither has reached production. Hanley acknowledged that hydrogen is currently being criticized, but emphasized that Australia has an abundance of hydrogen resources, making it a prime opportunity for the country to become a leader in both supply and adoption. He reiterated that Toyota’s hydrogen push is not a short-term investment, but rather preparation for the future.

Source: CarExpert