Speaking to CarExpert, Toyota Australia’s vice president Sean Hanley confirmed that diesel powertrains will remain in use for the next ten years, but their replacement is already underway. His comments suggest a broader reorientation toward hybrids and hydrogen, particularly in markets that have traditionally relied heavily on diesel, such as Australia.
Toyota has long positioned itself as a cautious realist in the global transition to electrified transport. While the company has resisted a full embrace of battery-electric vehicles, it has nonetheless played a leading role in hybrid development. The recent remarks on diesel come at a time when regulatory and consumer pressure continue to build against fossil fuel-powered engines, and where even resilient markets like Australia are facing inevitable change.
Hanley’s comments are especially noteworthy given Australia’s unique dependence on diesel. The country’s vast geography and reliance on long-haul transport and mining have historically made diesel the fuel of choice. If Toyota sees a limited future for diesel in Australia, it’s a strong signal that the fuel may be on an irreversible path to obsolescence worldwide.
Diesel Loses Ground, Even in Strongholds like Australia
Sean Hanley’s remarks to CarExpert were clear: diesel will remain relevant for about a decade, but not beyond that. “There will still be diesel for the next 10 years,” he said, but its long-term survival is unlikely.
This statement carries weight in Australia, where models like the Hilux, one of the country’s best-selling vehicles, are almost exclusively diesel-powered. The fact that Toyota plans to transition this lineup to gas-electric hybrid powertrains underscores the shift.
In the broader market, Toyota’s decision reflects a strategic pivot. According to CarBuzz, Toyota has already been gradually standardizing hybrid technology across its global offerings, with the Camry sedan being one of the latest models to go fully hybrid in the United States. That market, unlike Australia, has already phased out diesel entirely from Toyota’s passenger lineup, although diesel engines are still present in its Hino commercial vehicle division.
This erosion of diesel support follows years of environmental scrutiny. Diesels offer higher thermal efficiency and better mileage, but they emit more nitrogen oxides and particulate matter, both of which have significant environmental and health impacts. The legacy of scandals like Volkswagen’s Dieselgate, cited in CarBuzz, continues to shadow diesel’s image in the public eye.
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Hybrid Technology Leads the Near-Term Transition
Hybrid powertrains are taking center stage in Toyota’s transition away from diesel. These systems pair a traditional gasoline engine with an electric motor, offering improved fuel efficiency and lower emissions without requiring charging infrastructure. Toyota views this approach as a bridge between conventional combustion engines and fully electric or hydrogen-powered vehicles.
Hanley emphasized this strategy when discussing Toyota’s plans for the Australian market. As reported by the source, the company will phase out diesel variants in favor of hybrids, particularly for models where performance and durability remain critical. The automaker believes hybrid technology can meet these requirements while also helping reduce emissions across its fleet.
This is already being seen in the United States, where Toyota’s hybrid portfolio continues to grow. Vehicles like the RAV4 Hybrid and Highlander Hybrid are gaining traction with consumers looking for efficiency without sacrificing practicality. Although hybrids still rely on gasoline, their reduced environmental impact compared to diesel makes them a more viable option under tightening emissions regulations.
Hydrogen Seen as Long-Term Solution for Commercial Use
Beyond hybrids, Toyota is placing long-term bets on hydrogen. Hanley predicted that hydrogen will become a practical alternative fuel around 2035, particularly for commercial applications. This timeline reflects Toyota’s belief that sufficient infrastructure will be in place by then to support widespread hydrogen use.
Toyota is actively working to accelerate this infrastructure. One example is the Tri-Gen facility at California’s Port of Long Beach, which uses biogas to produce renewable hydrogen, electricity, and water. The company is also developing two types of hydrogen propulsion: internal combustion engines powered by hydrogen and fuel-cell electric vehicles.
Fuel cells combine hydrogen with oxygen from the air to generate electricity, emitting only water vapor. The Toyota Mirai sedan showcases this technology in a consumer vehicle, but the company is also testing hydrogen-powered trucks in collaboration with Kenworth at the Port of Long Beach. Other manufacturers like Hyundai, Daimler, and Volvo are also entering this space, particularly for long-distance freight, where battery-electric solutions remain limited by range and charging time.
As Hanley noted, by the mid-2030s, hydrogen could play a pivotal role in how commercial transport evolves beyond diesel and gasoline.
