Toyota News

Toyota recently announced it’s planning to ramp up sales of its zero- and low-emissions vehicles in Australia, but Polestar claims it’s still aiming to be under the average. The Japanese carmaker is aiming to have 30 per cent of its local sales be battery electric (BEV), plug-in hybrid (PHEV) and hydrogen fuel-cell (FCEV) by the end of 2030. “Surely that’s a conservative view, given that we’re at 25 per cent now,” said Polestar Australia Managing Director Scott Maynard. “So by the end of the decade, if you’re building 30 per cent, I would expect the market could well be running ahead of that. “So you’re still aiming to be behind.” Until the end of September this year, sales of EVs, PHEVs and FCEVs made up 27.8 per cent of the overall market share. A total of 265,870 were sold until the end of September, which is up 132.2 per cent year-on-year. There are a number of key drivers for this increase in zero- and low-emissions vehicles sales including the increase in fuel prices, more options from new brands at lucrative price points, as well as the Fringe Benefits Tax (FBT) exemption for EVs, among others. The Tesla Model Y stands out as a major reason for why sales of zero- and low-emissions vehicles have grown so much. A total of 35,930 examples have been sold until the end of September, which is up 108.4 per cent year-on-year. This firmly makes it Australia’s best-selling EV. In fact it was the best-selling car overall during May, June and August this year, beating the Ford Ranger, Toyota HiLux and Toyota RAV4. With the launch of the facelifted bZ4X earlier this year and the recent addition of the new bZ4X Touring, Toyota is currently experiencing record sales of its EV. They’re almost five times more than the same point in 2025. Toyota also already has the fleet-oriented and low-volume HiLux BEV and in mid-2027 will launch the C-HR BEV as a smaller electric SUV. While 100 per cent of Polestar’s vehicles are EVs, local sales are down 10 per cent year-on-year. A total of 1681 vehicles were sold until the end of September. Polestar’s best-seller has been the Polestar 4 for a considerable period now and it’s soon gaining an SUV body style with an actual rear window. This should see sales for this model increase further.

Toyota’s plan to make EVs cheaper, lighter and stronger is official. The Japanese carmaking giant is investing almost 13.4 billion yuan (roughly $3 billion) into its own self-developed gigacasting factory in Shanghai, China. Gigacasting uses machines to mould large chunks of the car’s body together, contrasting smaller individual fuses. The plant is already under construction, with production expected to begin in 2027 on models for its premium sub-brand Lexus. This process could be rolled out to more mainstream EVs such as the bZ4X and Chinese vehicles including the bZ3 in the future. The switch to China also signals a huge shift for Toyota because the brand has primarily developed its cars in Japan. Gigacasting is an absolute game-changer for EV production. The process involves large diecasting machines moulding body components into a single piece, in contrast to time-consuming welded assemblies. Toyota’s Chief Technology Officer Hiroki Nakajima said this decision reflected Toyota's move towards a new future. “This is a major opportunity to completely transform the manufacturing system,” Nakajima said in an interview in Brussels. “Our starting point has always been to insist on independent research and development.” Toyota is currently conducting testing and verification of the gigacasting technology in Japan before it sends the process global. A production version of the Lexus LF-ZL concept could be the first model as part of the project. The brand revealed the LF-ZL in 2023 and said it would be built using gigacasting. Most cars are built by stamping aluminium and steel pieces together, which is a longer process and doesn’t have the same structural rigidity as large connected pieces. Using gigacasting makes a car significantly lighter, because it doesn’t have individually-stamped metal weighing it down. Electric cars are heavier than petrol- and diesel-powered equivalents, which greatly impacts their overall driving range. A lighter EV means more driving. While battery packs are the main culprit for the weight disparity, gigacasting can reduce the overall body weight of a car by as much as 20 per cent. The move is also expected to significantly shorten vehicle development and production cycles. While gigacasting isn’t mainstream yet, it has been picking up steam among some of the world’s biggest carmakers. Tesla uses gigacasting to build many of its models including the best-selling electric car, the Tesla Model Y SUV, and the Model 3 sedan. BYD also uses gigacasting on some of its premium models, including the upcoming Denza Z sports car and Yangwang U8 ultra-luxury SUV. Ford, Hyundai and Nissan are exploring the possibility of implementing it into their production lines as well.

If you can’t beat them, join them. That’s the strategy of Toyota, which has long shunned high-tech features that are at the heart of new Chinese rivals, but it is preparing to catch up at break-neck speed. News outlet Nikkei Asia reports Toyota is now planning to turn all 50 of its current cars into software-defined vehicles. Software-defined vehicles is a fairly new auto industry buzzword, but it is taking the new and old guard by storm. It effectively means the vehicle has switched from being primarily a mechanical instrument to a software-powered device. This means software forms the core of the vehicle and enhances nearly all features — from advanced safety tech, autonomous driving, over-the-air updates, connected to everything, detailed vehicle telematics and intuitive software-powered comfort items. These features are easier to integrate into electric cars as they ditch many of the mechanical elements of petrol and diesel cars. The electric motors, battery management and transmission are all programmed rather than hardwired. Toyota has developed its own proprietary Arene software, which is already in use in the new Toyota RAV4, for example. The main function will be to roll out over-the-air updates, which have been a mainstay of Teslas and Chinese vehicles from BYD, GAC, XPeng and Zeekr, among others for years now. These over-the-air software updates work just like they do with a smartphone and fix bugs, roll out new features and enhancements while the vehicle is not in use. Nikkei Asia also reports the software will be installed in robots, homes, powerpoles and other infrastructure, which means if linked the car could turn on your house lights, open garage doors and start air-conditioning as you approach. It has previously been reported Toyota is looking to massively increase profit through post-purchase options, including software updates, a focus on genuine spare parts and used car sales. Toyota wants to boost its profit from outside new car sales by 40 per cent, and this is how they plan to do it. That means Toyota is planning to slug customers more than $26 billion annually for the services rivals - such as Tesla - give for free.

Toyota will reportedly begin producing the next-generation Corolla in China in 2028. As reported by Nikkei Asia, this version of the new Toyota Corolla will be built by FAW Toyota Motor, which is an existing joint-venture company between Toyota and FAW Group. At this stage it’s unclear whether this Chinese-specification version of the new Corolla will be the same or different from the Japanese version. Historically there have been some differences, most notably with design. Nikkei Asia does note this new Corolla will feature multiple powertrain options. These are reported to include not only petrol and hybrid options, but also plug-in hybrid, electric and hydrogen fuel-cell powertrains. At the 2025 Japan Mobility Show, Toyota revealed the Corolla concept, which previewed what the next-generation model may look like. The exterior design isn’t too far from the current Prius hatchback and it features front and rear LED light bars, large 21-inch alloy wheels, a small display showing how charged the battery is, as well as a small rear spoiler. It’s unclear how many of the features shown on the concept will make their way into the production version. Although it’s almost been 12 months since the reveal of this concept, Toyota still hasn’t provided any information regarding when we may see the production-ready, next-generation Corolla. Toyota still hasn’t provided a timeline of when the next-generation Corolla will launch, the existing 12th-generation model continues to get older. This version of the Corolla was first revealed and launched locally in 2018. A facelift launched in 2022, then the high-performance GR Corolla launched in 2023. In Australia both the sedan and hatchback versions of the Corolla are offered and they’re all produced in Japan. Despite its age, the Corolla continues to be the small car segment-leader. Until the end of September, a total of 10,182 examples were sold, which is down 28.7 per cent year-on-year.

There is a sprint to the finish line as carmakers prepare for a tumultuous end to 2026. This year will be remembered as the point China ascended, but a few other storylines are developing. This is our prediction for the last quarter of 2026. That is a shocking number, that would have seemed impossible just four years ago when Aussies bought about 33,000 electric cars. The sheer breath of choice across all body  shapes, price ranges and brands is what is driving the EV revolution. Healthy incentives, such as the Fringe Benefits Tax exemption, are making the idea of an EV palatable to those that previously never would have considered one. Tesla is still the dominant force in electric cars, but it isn’t the only mover and shaker. BYD’s success has been driven by its range of EVs, and Geely and Zeekr are both selling their electric cars in big numbers. Even Toyota, which was firmly in the no camp for EVs just half a decade ago, has managed to increase sales of its bZ4X by more than 300 per cent this year. New Chinese brands are doing the heavy lifting, but mainstream carmakers are starting to leave their mark by converting their loyal base to zero-emissions vehicles. Toyota will be the best selling car brand this year and the foreseeable future. Despite all the commotion made about BYD’s barnstorming run up the sales charts, especially in the early part of the year, there was never any doubt Toyota would come out on top. Toyota has sold about double the cars of BYD, which is actually a mega effort by BYD and it is on track to sell more than 100,000 cars this year. Toyota has assured everyone it will finish the year strong, with an increase of supply for key models, including RAV4, HiLux, LandCruiser and bZ4X. Toyota is predicting more than 220,000 sales for this year, which means they would need to deliver about 23,000 a month through the last quarter. Mitsubishi, Nissan, Subaru and Volkswagen were once the first choice for a huge swath of Aussie buyers, but they haven’t had the vehicles buyers demanded in recent years. Now those once-loyal buyers have jumped ship to BYD, Geely, Zeekr and the like. It’ll be a hard fought battle to win those buyers back. All have some exciting models in the pipeline, with the new Mitsubishi Pajero 4WD, ASX VR-e electric hatch, Nissan Patrol, Nissan Navara Pro PHEV ute, VW ID.Tiguan chief among them. But it is likely the ship has already sailed as the tide has turned towards these new brands. They have the wind in their sails and recording eye-popping growth numbers. Zeekr is up 1500 per cent, Geely and Jaecoo are up more than 600 per cent, BYD is up 100 per cent, Chery is up more than 50 per cent and GWM 14 per cent. The momentum is in their favour and they also have a healthy pipeline of affordable and desirable vehicles locked in for the next 12 months.

Toyota has finally settled its long-standing lawsuit in Australia. The giant Japanese brand has agreed to pay $750 million to settle two class-action High Court cases. A defective diesel particulate filter (DPF) has impacted more than 260,000 examples of the Toyota Hilux ute, Fortuner SUV and LandCruiser Prado 4WD models built between 2015 and 2020. The issue affected 2.4-litre and 2.8-litre four-cylinder turbo-diesel engines, where the DPF system failed to burn off diesel soot properly, leading to premature engine wear and increased fuel consumption. It also caused clogged filters, excessive white smoke and bad smells. A spokesperson for Toyota Australia said the brand apologised for issues caused for its customers and will continue to offer a free remedy. They said the settlement remains subject to court approval. “Toyota Australia has agreed to a settlement in the DPF Class Action case,” they said. “We apologise for any inconvenience or discomfort experienced by our customers. “We remain committed to assisting any impacted customers and to providing a free-of-charge remedy that has been available since 2020. “The trust of our customers has been central to Toyota Australia for more than 70 years, and we do not take that for granted.” The proceedings first commenced in 2019 where they began in the Federal Court. The plaintiffs’ argued the value of affected cars decreased as a result of the issue and that Toyota engaged in misleading conduct. Toyota has offered a free-of-charge mechanical and software fix for the DPF issue since 2020, but there were concerns this would impact any potential compensation for eligible owners. The overall compensation figures has been reduced substantially despite the court finding Toyota needed to compensate owners. The Primary Federal Court applied a 17.5 per cent value decrease, but this Full Federal Court set this aside and applied a 10 per cent figure. The High Court of Australia set aside both rulings and instead assessed value reduction using hindsight in consideration of the 2020 fix. Toyota has subsequently settled the case for $750 million, pending a final court go-ahead, compared to a previously-rumoured $2 billion figure.

A fix for a huge electric car problem is in the works. The Electric Vehicle Council (EVC) has announced a $1.43 million investment into a national EV charging roadmap.  The EVC said in its 2026 State of EVs report that Australia still needs "substantial public charging investment”.  It called for better data on demand use, reliability and coverage, with Australia’s charging infrastructure conundrum more complex than merely installing more fast chargers.  The roadmap is expected to be finalised in mid-2027.  The $1.43 million is made up of funding from the Australian Renewable Energy Agency (ARENA) ($1.06 million) as well as contributions from the EVC and other project partners.  The roadmap will look at charging demand, pressure points and where greater coordination could inform investment decisions through to 2035. It aims to introduce a coordinated charging network for passenger cars and heavy vehicles in metropolitan and regional Australia.  “Other major EV markets have recognised the value of coordinated national planning,” EVC Chief Executive officer Julie Delvecchio said.  “This Roadmap will bring that to Australia, shaped around our distances, our electricity system and the needs of everything from passenger cars to heavy trucks.” Owning a petrol or diesel car is becoming more expensive in Australia, and buyers are making the switch to EV power.  The Tesla Model Y has consistently featured in the top five best-selling cars, and in June 2026, it achieved a recording-breaking 8072 sales.  The BYD Sealion 7 has also recorded a serious increase in sales as it provides tough competition for the Model Y, while Geely’s EX5 has had a bumper 2026.  The federal government is targeting 5 million electric cars on Aussie roads by 2035, which would require the total number of EVs on the road to increase tenfold. Electric cars are now among the cheapest on offer in Australia.  The BYD Atto 1 starts from $19,990, drive-away (until December 15, 2026), while the Geely EX2 is available from $26,490, before on-road costs.  The New Vehicle Efficiency Standard (NVES) is helping to increase EV choices for buyers, with high-emission cars incurring hefty fines under the scheme. 

Close to 6000 examples of the 2026 Toyota RAV4 are the subject of a safety recall to rectify a manufacturing fault just months after it went on sale. The Federal Department of Infrastructure, Transport, Regional Development, Communication and the Arts has issued a safety recall notice impacting 5925 RAV4s sold new in Australia in 2026. It said a potential fault with the hybrid system’s motor/generator may cause a “loss of motive power whilst driving, (increasing) the risk of an accident, causing serious injury or death to vehicle occupants and other road users.” It confirms that plug-in hybrid examples of front-wheel drive (AXAP62R) and all-wheel drive (AXAP64R) versions of the RAV4 have been impacted. The notice said, “Due to a manufacturing issue with the motor generator electronic control unit (MG-ECU), the motor initialisation process may not complete correctly. This may prevent the electric motor from operating as intended at higher speeds,” the notice said. The department added, “If the electric motor does not operate as intended, warning lights will illuminate and the vehicle may enter fail-safe mode or shut down, resulting in a loss of motive power. “A loss of motive power whilst driving increases the risk of an accident, causing serious injury or death to vehicle occupants and other road users.” All grades of the nominated models sold this year are potentially included and the department says owners of affected vehicles will be contacted in writing by Toyota requesting they schedule an appointment with their preferred authorised Toyota dealer for rectification, free of charge. Alternatively, Toyota can be contacted via the Toyota Recall Assist helpline on 1800 987 366 (Monday to Friday, 08:00 - 19:00 AEST / AEDT), email recallsupport@toyota.dataresponse.com.au or through its website https://toyota.com.au/recalls.

While the future of the current Toyota Kluger remains uncertain, the Japanese carmaker has confirmed the Kluger nameplate will carry over. “Firstly with regard to nameplate of Kluger, we will continue,” said Toyota Australia Vice President National Sales, Marketing and Franchise Operations John Pappas to CarsGuide. “So, we have no plan on discontinuing the Kluger nameplate. “Regarding the BEV … right now we have nothing to confirm or announce on that BEV, but … Kluger will continue.” The current-generation Toyota Kluger (Highlander in other markets) has been produced in the USA since 2019. Reports from the US indicate that production of the current Kluger will finish up before the end of 2026. It’s unclear if this is just for US-specification Highlander models or globally. The outgoing Kluger/Highlander will be replaced by a new, all-electric model called the Highlander BEV. If it launches locally it will likely be called the Kluger BEV as Hyundai owns the trademark for the name ‘Highlander’. The Highlander BEV is set to launch in the US in 2027. At this stage it’s unclear whether a local launch will happen, but this is a potential way for the Kluger name to carry on in Australia. Toyota already offers the larger Grand Highlander that’s built on the same TNGA-K platform as the regular Kluger. Right-hand drive production for this model has never been confirmed. While Toyota Australia hasn’t confirmed the launch of the Highlander/Kluger BEV, Lexus has just announced it is launching the new TZ in 2027. The Lexus TZ is based on the same TNGA-K EV platform as the Kluger BEV. There’s also a Subaru version of this car called the Getaway, but for now this is only confirmed for North America. In the US, the new Kluger BEV will be available with two electric motor configurations, as well as two battery packs. A single-motor, front-wheel drive version produces 164kW, whereas a dual-motor, all-wheel drive set-up has a total system output of 252kW. A 95.8kWh lithium-ion battery will be available first, with a smaller 77kWh unit to be offered later. If Toyota did bring the new electric version of the Highlander to Australia and badge it as the Kluger, it would be the Japanese brand’s largest EV to date. Beyond the related Lexus TX, key rivals that are large three-row electric SUVs include the Kia EV9, Hyundai Ioniq 9, Tesla Model Y L, Cadillac Vistiq and the Volvo EX90. There’s also the new Mercedes-Benz GLB, which offers both an electric powertrain and three rows of seating, but it’s a considerably smaller vehicle. Toyota has been ramping up its EV sales thanks to the addition of the bZ4X Touring and it’s aiming to have 30 per cent of its overall local sales be EVs, PHEVs and FCEVs by the end of 2030.

The Tesla Model Y is clearly the new Holden Commodore and the BYD Sealion 7 is the new Mazda CX-5. That’s how much things have changed, and it’s also how unscientific this story is - but I’ve included a table that makes me look as if I've based some of this on facts. Yep, the top 10 best-selling cars in Australia in 2026 looks very different to the top 10 from 2016. What were the big sellers back then and what’s replaced them now? Have we progressed onto better cars or was 2016 the peak and it’s all been downhill since? If you were to travel back 10 years in time and show anybody the top 10 best-selling cars for September 2026, even a car journo would look at you and say: "What’s a Geely EX5?". And you’d tell them it's a fully electric mid-sized SUV that came in at No.8 in the list of best sellers for September, 2026. But do not tell them anything else, you’ll risk altering the time line.  If you look at what car placed No.8 in 2016 you’ll find it was the Mitsubishi Triton ute. The Triton has fallen out of today’s top 10 in fact only two of the cars from the 2016 best sellers are still in the 2026 list, some of them like the Holden Commodore don’t exist at all anymore. Check out the table below for a side-by-side comparison of September 2016 v September 2026 In 2016, all of our top 10 cars had internal combustion engines (ICE) and only the Corolla was offered with a hybrid powertrain.  Currently, three of our top 10 cars are fully electric, five are offered in both hybrid and ICE formats, while only two models are only offered with ICE. The Corolla is gone, well it’s still on sale in 2026, but it’s left the top 10. See 2016 was one of the last years when hatchbacks ruled. The Corolla, Mazda3, Hyundai i30 were the three little kings, with the Hyundai Accent thrown in there, too. But they’ve been replaced now by new small rulers. I would even say the Chery Tiggo 4 and Haval Jolion are the new Corolla, i30 and Mazda 3. They are almost exactly the same size, price and target demographic for a Corolla in 2016. Following this gut logic I reckon the Tesla Model Y is the new Commodore. Holden fans won’t like to admit it, but they know I’m right.  The BYD Sealion 7 — that is the new Mazda CX-5. They’ve everywhere and they appeal to people who think they’re a bit better than a RAV4. Who’s now buying the RAV4? That’s a trick question because we all know RAV4 owners go on to buy another RAV4. So the RAV4 is the new RAV4. The EX5 is obviously the new Hyundai Tucson because it's one of the best but under-appreciated cars here. The D-Max is the new Triton. And that’s because the D-Max is no longer the runt of the ute litter, but it's still cheaper than a Ranger. What’s left. Ranger hasn’t changed - the same people are buying it and more of them and the same goes for HiLux. Those folks who would have loved V8 Commodores and Falcons are now in the tough ute group. Basically anyone who’d have a HSV or FPV 10 years ago is in a Ranger Raptor or HiLux GR Sport now. Prado is interesting and I think they are Toyota buyers who don’t want a Kluger and didn’t like their Fortuner but aren’t up for the 300 Series big dog. What do you think? If the Tesla Model Y isn’t the new Commodore then what is?  And were things better in 2016 when everything was ICE? Is our top 10 now looking like a list of best-selling electrical appliances? Are the Ranger and HiLux the last bastions of the best era ever? Or has their time come to move aside because EVs make far more sense? Also as a side note just to reassure you somewhat that not all of this is complete rubbish. Not only was in the same role at CarsGuide in 2016, but I'm pretty sure I also took most of the pictures of these cars from then, too. Stay tuned for my next unscientific round up of what’s what in 2036 when I’ll tell you that the super popular Mooflander Huckster 4 is the new Tesla Model Y.