Could this secure the diesel ute's future? Surprising car brand to develop 'crucial' diesel-hydrogen engine

After entering administration four years ago, scoring a new owner – KG Mobility – in 2022 and launching a rebrand last year, nothing appears to be off the table for KGM SsangYong.

So much so, the South Korean brand has announced a partnership with American firm Phinia Delphi, a manufacturer of hydrogen and diesel engine components, to co-develop future internal combustion and hydrogen engines.

A press release revealed that it is part of a South Korean government initiative to promote carbon-neutral technologies, with the aim of developing a 2.0-litre diesel-based hydrogen engine that meets future carbon emissions restrictions and has a range of over 500km for "industrial and vehicular applications”.

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Read More About KGM Ssangyong Musso

In other words, KGM SsangYong is developing a new diesel-hydrogen ute that is not in any way derivative of the 2.2-litre diesel engine currently powering the Musso ute.

A KGM representative said, “eco-friendly hydrogen engines are a crucial next-generation powertrain technology".

“The hydrogen engine developed through this collaboration will be applicable not only to vehicles but also to construction and industrial machinery.

2025 KGM Ssangyong Musso Ultimate (Image: Glen Sullivan)

“Leveraging KGM’s unique ICE expertise, we aim to pioneer the alternative fuel market and expand the eco-friendly pick-up segment, targeting niche opportunities in the ICE market.”

The brand also confirmed it is working on plug-in hybrid (PHEV) technologies too, but details on prospective models remain under wraps for now.

KGM SsangYong doesn’t currently have a hybrid, PHEV or EV model on sale in Australia, although its first electric model – the Musso EV ute – was confirmed for Australia this month.

A timeline is yet to be determined, but we expect its electrified line-up to grow even further this year with the Torres EVX SUV, a cut-price competitor to the BYD Atto 3 and Hyundai Kona, also confirmed for launch.

Before then the Actyon, KGM SsangYong's petrol-powered family SUV competitor to the Mitsubishi Outlander and Honda CR-V, will join the brand's line-up in quarter two.

Expect further information on KGM SsangYong’s product plans to follow throughout 2025.