Ute News
Toyota settles $750m class action
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By Tim Gibson · 13 Oct 2026
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.
Inside Isuzu's fight for survival
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By Andrew Chesterton · 13 Oct 2026
Isuzu says it will look to trade emissions credits with other manufacturers and attempt to share the extra cost between dealers, its local head office and its international HQ to keep selling the diesel D-Max and MU-X in Australia without jacking up prices. The brand is in a tough spot when it comes to the federal government's New Vehicle Efficiency Standard (NVES) in Australia, with two models sharing diesel engines, and no form of electrification either here or coming in the immediate future. But it also says the segments it competes in – namely the ute and off-road SUV spaces – aren’t embracing electrification, even if it had powertrains to offer. That leaves it with little option but to buy credits from other lower-emitting manufacturers. Part of the government’s NVES policy is that manufacturers who exceed their fleet emission target end in credit, while those who miss theirs end with a deficit, but brands can trade to balance their ledgers. “The strategy is that we’ll do everything we can to make the impact as low as possible on the end user,” says Rod Caldwell, Executive General Manager - MD Office and Internal Audit Office. “If that means we need to buy credits, we're not saying that we won't do that. "If that means that it protects the consumer from any excessive price increases or whatever, but it gives them the lowest impact, then that's what we'll do. Some brands say they won't, we're saying that's an option we will seriously consider.” Caldwell says the brand would attempt to share any cost increases across the vehicle suppliers, rather than pass them onto the customer, though he concedes that might not be entirely possible. “We're trying to trim expenses at the same time, and we've got a number of parties involved in our process,” he says. “We've got the manufacturer, we've got our owner, we've got us. So we’ve all got a job to do to make sure that the customer doesn't have to wear the brunt of it. “We want to minimise the impact. We will have to absorb some, the factory will have to absorb some. At the end of the day, the factory is the one responsible for the penalty, not us, but we've got to come to an arrangement on how we share this burden. “It's not going to be long term. We are going to have new technology in the future, for sure.”
Honda's new ute on Australia's doorstep
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By James Cleary · 12 Oct 2026
Mitsubishi’s Triton ute looks set to spread its mechanical DNA further than the underpinnings of its Nissan Navara sibling. Reports out of Japan point to a Honda-badged, Thai-built version of the ladder frame workhorse planned for sale in multiple Southeast Asian markets and beyond from 2028. Nikkei Asia has reported increasing competition from Chinese challenger brands in Asia has forced Honda to review its largely stand-alone product policy, tapping into Mitsubishi’s body-on-frame ute expertise as a pragmatic short-cut response. Honda already has the Alabama-built Ridgeline dual cab pickup in its North American portfolio, but that petrol V6-powered monocoque mid-sizer lacks the load carrying and hauling capacity of a traditional ute with a tough leaf-spring rear end. The report references collaboration talks between Honda, Mitsubishi and Nissan, which have been ongoing since August 2024 and notes the Triton’s reputation for durability and off-road performance; in-demand attributes for hard-working trucks in ASEAN countries. Honda entered into numerous model share arrangements with Isuzu through the 1990s (Passport, Horizon, Jazz), but has mainly operated solo since then, so a potential ute collaboration with the Renault-Nissan-Mitsubishi Alliance partners represents a telling shift in the Japanese maker’s new product development model. The report notes that until recently, Japanese brands collectively commanded around 90 per cent market share in Thailand and Indonesia, that figure shrinking to closer to 70 per cent currently as buyers embrace EV passenger and commercial options from the likes of BYD, Chery, Geely, XPeng, Zeekr and many others. More specifically, the report said Honda's combined year-on-year sales in Indonesia, Malaysia and Thailand have fallen 20 per cent (to around 110,000 units) for the first eight months of 2026. And it’s worth noting the potential arrangement would improve Mitsubishi Motors factory efficiency in Thailand, where a reported collective capacity of approximately 386,000 units resulted in only 170,000 vehicles produced in 2025. With multiple right-hand drive markets scattered throughout Southeast Asia, including Hong Kong, Indonesia, Malaysia, Singapore and Thailand, the possibility of a Honda ute in Australia is significant and CarsGuide contacted Honda Australia for comment on the prospect of a local introduction. A spokesperson told us, “This is not an official announcement made by Honda or Mitsubishi Motors." "While Honda, Nissan, and Mitsubishi Motors are discussing various potential collaboration opportunities under the framework of our strategic partnership, there is nothing specific to share at this time. "We will make an official announcement at an appropriate time,” they said.
Nissan axes home-grown hero
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By Jack Quick · 12 Oct 2026
Nissan Australia has confirmed it will not build a locally-fettled Warrior version of its new Navara dual-cab ute. A concept version of a new Navara Warrior was shown to Australian media in November 2025 when the current, D27-generation Navara was first revealed. Nissan claims it was around 70 to 80 per cent of the way through the development process. The plug was pulled after the ability to fast-track the new, Chinese-sourced Navara Pro PHEV became an option. Like all Nissan Warrior models, the D27-generation Navara Warrior concept was equipped with a series of upgrades to enhance its off-road capabilities. These included a suspension lift kit, aftermarket 17-inch wheels that provided wider track for increased stability and presence and 32-inch all-terrain tyres for improved clearances. Additionally there was a Warrior-specific bullbar, wheel arch flares, a multi-stage bash plate and two extra recovery points as well as aftermarket driving lights. At the reveal event last November, Nissan had only committed to creating the flagship Pro-4X Warrior, but it was looking to potentially introduce lower versions. Nissan’s off-road-oriented Warrior models have been developed in partnership with Melbourne-based engineering and manufacturing firm, Premcar, since 2019. The first Nissan Warrior model was the Navara N-Trek Warrior, which launched that year. It was replaced by the Navara Pro-4X Warrior in 2022. Later, the budget-oriented Navara SL Warrior joined the line-up. Premcar applied itself to the Y62 Patrol, creating the Patrol Warrior that launched in 2023. With the launch of both new-generation Navara and Patrol models, it’s unclear what the future of the Warrior nameplate is for now. Both the D27 Navara and Y63 Patrol offer off-road-oriented Pro-4X trims, but neither have been further tweaked by Premcar. The decision to shelve the D27-generation Navara Warrior follows Nissan fast-tracking the Navara Pro PHEV. This new, Chinese-sourced dual-cab ute is set to launch locally in 2027 and has been subjected to an “extensive” local development and evaluation program since 2025. Prototypes have already travelled over 20,000km on Australian soil. A new 2.0-litre turbo-petrol PHEV powertrain has been selected and tested for the Australian market. It produces total system outputs of 300kW and 800Nm. Additionally, Nissan is targeting a 3500kg braked towing capacity, as well as a payload capacity of approximately 1000kg.
Cheap new Chinese brand incoming
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By Byron Mathioudakis · 12 Oct 2026
An unknown brand specialising in hybrid and electric vehicles (EVs) from China will arrive in Australia next year to take on BYD, Chery, GAC, Geely, Haval, MG and others. This may sound like every other Tuesday, nowadays, but the difference here is that the latest nameplate arrival, Nevo, will represent Changan Automobile – the state-owned carmaker that has been making vehicles in China since 1959. And that’s the longest of the lot. According to Changan Australia Head of Brand and Marketing Andrew Haurissa Nevo is now locked in for our market. “The first one (after luxury brand Avatr) will be a Nevo vehicle,” he revealed. “Whether it comes here as Nevo or Changan Nevo, that’s yet to be confirmed.” While only existing since 2023 in its home market as a Qiyuan, Nevo has been a runaway success, and so will be set up as the public-facing mainstream entity, likely in lieu of the Changan brand in Australia, at least for the time being. Which Nevo arrives first is not yet clear. It is believed that the Q05 small SUV hybrid and the Q06 mid-sized SUV EV with range-extender EV option may be at the head of the queue. Taking a page out of the Geely EX5 playbook, these should give Changan Automobile two strong players in the $30,000 to $50,000 price range, capitalising on the booming electrification growth areas in Australia, to put it in the thick of the action. Interestingly, Australians already have been exposed to Changan and Nevo models already. The Mazda 6e and CX-6e EV sedan and SUV are part of a joint-venture project using two respective Deepal models as a base - the L07 and S07 respectively. Plus, there is the E07 Multitruck, the strange SUV/pick-up truck mash-up EV marketed in Australia by Subaru importer Inchcape as a Deepal, alongside the more-conventional S07 mid-sized SUV coupe sibling that isn’t sold as a Nevo in China. Here’s how the strategy should play out in Australia. Nevo will sit at the bottom of the rung under the Changan Automobile parent-company umbrella, coming in after Avatr launches in the first half of next year, as the flagship luxury brand. To that end, the latter will take on BYD’s Denza, Geely’s Zeekr, MG’s IM and GWM’s Wey models, beginning with the Zeekr 7X-chasing 07L large-sized premium SUV EV, followed by the 06T sports wagon/crossover EV due towards the end of 2027. If that seems like a big gap, in China, Deepal is the premium brand positioned in between. Right now, there’s no talk about Changan Australia taking over Deepal distribution from Inchcape, but that may change once the contract ends in the future. “Some products coming from the Nevo stable might seem better than Deepal, but from a brand hierarchy perspective, Deepal sits above Nevo,” Haurissa revealed. “In Australia, we are quite unique in that we will be managing both (Nevo and Avatr together). “However, the brands will sit quite separately. They’re structured separately now, but they are conforming in the back end. “Think of how Volkswagen (and Skoda, Cupra, Audi) and Porsche are. Similarly, we will have a joint back end to support the brands, but will be marketed very differently.”
Australia's fiercest new car rivalries!
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By Stephen Ottley · 10 Oct 2026
Holden versus Ford was the rivalry that defined the Australian car industry for decades. Whether it was in the driveways around the country or on the racetrack, like this weekend’s Bathurst 1000, for generations Aussies picked a side - red or blue. But while Ford and General Motors (via Chevrolet) are still competing at Mt Panorama, the fire has well and truly gone out of the contest between the two sides. While Ford remains a popular brand, with Holden gone and General Motors now fragmented into Chevy, Cadillac and GMC, there’s no direct competition. So what is Australia’s new car rivalry? There are several options, but in an ever-shifting new car market it can be tricky to pin down just one specific head-to-head battle. So here are a list of our contenders for the replacement of Holden v Ford - let us know your favourite (or suggest your own) in the comments or join the debate on social media. The Holden v Ford contest was defined by Commodore against Falcon, at least it was for decades. These days the two most popular new vehicles have traditionally been the Toyota HiLux and Ford Ranger, so it makes sense to pit these two against each other. Ford’s Everest also gives Toyota’s Prado a hard time in the battle for Australian SUV buyers looking for adventure. And the Mustang and GR Supra are now rivals on track, competing against each other in the Supercars. But, the argument against this being the new Aussie grudge match is Ford simply doesn’t have enough competition against the rest of Toyota’s expansive range. Ford sales have fallen off notably in 2026 (down 14 per cent at the end of September), while Toyota remains on top. Even before Holden’s demise, Toyota had emerged as the benchmark in the Australian car industry. Such was its dominance, capturing nearly a quarter of the new car market each year, that it seemed nobody could challenge it for top spot on the sales charts. But in 2026, BYD has emerged as the surprise new contender, not only for a top five spot, but actually the clear number two brand - ahead of Kia, Ford, Mazda and all the rest. BYD sales have more than doubled in ‘26, as its line-up of electric and plug-in hybrid models clearly hits the spot with what Australian buyers are looking for. Perhaps even more so than Toyota’s limited all-electric and conventional hybrid offerings. Toyota remains comfortably ahead, as in nearly double the amount of sales ahead. So it may take a few more years for Toyota to get nervous about losing the sales lead, but it seems like BYD is the most likely challenger for the crown. If we’re looking to the future perhaps this will come to be the defining contest for the hearts and purchases for Australians in years to come. The pair have locked in a battle for the best-selling electric vehicle in recent years, although the American brand looks to comfortably claim that honour this year thanks to the boom in Model Y sales. But as Australians seemingly embrace electrification, these two brands have clearly impressed plenty of buyers with what they are offering. Whether or not they can both become best-selling brands, especially Tesla with its limited line-up, remains to be seen and that will define how far into the Australian psyche this rivalry ingrains itself. While it’s clearly not the same as the Holden v Ford contest of one brand against another, there is very clearly a new divide in Australia between the so-called ‘legacy brands’ and the new order of Chinese car makers. The likes Toyota, Kia, Mazda and Hyundai have been the Aussie favourites since the Holden/Ford dominance faded - and, in fact, the rise of these brands undoubtedly played a role in the downfall of Holden. But in recent years, especially 2026, they have come under pressure. BYD, GWM, Chery and MG have now cemented themselves in the top 10 selling brands, pushing the likes of Mitsubishi, Subaru, Nissan and Volkswagen down the sales charts. As I’ve previously written, Australians are more brand agnostic than ever before and have embraced these new Chinese brands remarkably quickly. But there are clearly still many who prefer to stick to brand names they know and have experience with. This divide, between those that appreciate the establishment and those who are happy to try the new, could very much come to define the next decade of car culture in Australia. What do you think is the new Holden v Ford? Let us know in the comments or join the debate on social media.
This is the new Holden Commodore
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By Laura Berry · 10 Oct 2026
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.
Wave of new Toyotas to shorten wait times
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By Jack Quick · 09 Oct 2026
Toyota is preparing for a record-breaking fourth quarter after a slow start to the year. Toyota Australia Vice President National Sales, Marketing and Franchise Operations John Pappas said the Japanese carmaker will sell over 220,000 vehicles in 2026. Until the end of September, Toyota has sold a total of 152,944 vehicles, which is down 15.9 per cent year-on-year. In order to reach this target, Toyota has to sell over 67,000 vehicles before the end of 2026, or roughly 23,300 per month. The Japanese carmaker claims it’s on track to once again be the best-selling brand in Australia. This will make it the 31st consecutive year. For reference, the second- and third-best selling brands year-to-date are currently Ford (61,104) and Mazda (58,865). At the end of 2026, Toyota also claims it will have led the light commercial vehicle (LCV) segment for 48 unbroken years. The way that Toyota claims it will be able to deliver this record-breaking fourth quarter of vehicle sales is thanks to increased vehicle supply across multiple in-demand model lines, including the HiLux, Prado, LandCruiser, RAV4 and bZ4X. In September Toyota sold a total of 4624 examples of the RAV4 mid-size SUV, which is up 81 per cent on the same month last year. Toyota has sold 31,209 RAV4 examples year-to-date, which is down 11.1 per cent year-on-year. Toyota sold 2006 Prado examples in September, which is its second-best monthly sales result for this model in over 12 months. A total of 15,665 year-to-date sales means it’s down 28.3 per cent year-on-year. With the introduction of the new bZ4X Touring trim, overall bZ4X sales year-to-date are up 331.8 per cent, year-on-year. A total of 2919 examples were sold until the end of September. While Toyota may be gearing up for a record-breaking fourth quarter of vehicle sales, it likely won’t be enough to top its overall yearly record. In 2024 Toyota sold a total of 241,296 vehicles and this is roughly 20,000 more than what it’s projecting for its 2026 sales. Pappas notes the reasons for this include slower monthly sales results for the RAV4 and HiLux. Thanks to increased supply, Toyota claims the average wait time for many of its models is now down from three-to-six months, to three months.
Nissan's new BYD Shark 6 hunter confirmed
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By Jack Quick · 08 Oct 2026
Nissan has confirmed it will launch the Navara Pro plug-in hybrid (PHEV) dual-cab ute in Australia in 2027. Dubbed the Nissan Frontier Pro in other markets, the Navara Pro will be Nissan’s first PHEV in Australia and shapes up as a key rival to the likes of the BYD Shark 6, GWM Cannon Alpha PHEV and forthcoming Chery Stockman. The Nissan Navara Pro PHEV is the first Chinese-made Dongfeng joint-venture model to launch locally. It’s also the first time it’ll be offered in right-hand drive. Nissan has been testing Navara Pro PHEV prototypes locally since 2025 and what is set to be offered is a unique set-up. Final pricing and specifications will be confirmed closer to its launch. Nissan evaluated the globally announced 1.5-litre turbo-petrol PHEV powertrain, as well as a new 2.0-litre turbo-petrol PHEV powertrain in Australia. The latter has been selected for the Australian-specification Navara Pro PHEV. The 2.0-litre turbocharged four-cylinder petrol engine has a 'high-output' electric motor integrated into an eight-speed automatic transmission, with total system outputs of 300kW and 800Nm. There is a four-wheel drive system with a series of drive and terrain modes. Nissan is targeting a 3500kg braked towing capacity with the Navara Pro PHEV, as well as a payload capacity of approximately 1000kg (both subject to final homologation). Nissan hasn’t confirmed the battery size of the Australian-specification Navara Pro PHEV. Globally there are 17kWh and 32.85kWh units available, but these are aligned with the smaller 1.5-litre turbo-petrol PHEV powertrain. As a result, the claimed EV range will be announced closer to the Navara Pro PHEV’s local launch. Vehicle-to-load (V2L) is set to be offered at an as yet unknown rate. This will allow for electrical appliances to be powered remotely. Final specifications are yet to be locked in, but Nissan notes available features, depending on the trim level, include a large central touchscreen, digital instrument cluster, panoramic glass sunroof, as well as heated and ventilated front seats. Nissan has been testing five examples of the Navara Pro PHEV in Australia since 2025 and they have collectively travelled more than 20,000km Down Under. The Japanese carmaker is yet to finalise the Aussie set-up and has evaluated leaf-spring and multi-link coil rear suspension configurations. The final suspension arrangement will be confirmed closer to the car's launch in 2027. Additionally, the Navara Pro PHEV’s powertrain, advanced driver assistance system (ADAS) calibrations, drive and terrain modes, tyres and differential lock configuration have all been evaluated locally. This is above and beyond towing and load performance testing in Australia. The Nissan Navara Pro PHEV is set to be the first Chinese-made Nissan offered in Australia. However, a series of other Chinese-made Nissans are made within its Dongfeng joint-venture operation. These include the N6 PHEV sedan, N7 electric sedan, NX7 PHEV SUV and NX8 electric and range-extender (REEV) SUV. None of these have been confirmed for right-hand drive production yet. The Navara Pro is also offered with regular turbo-petrol and turbo-diesel powertrains in other markets. It’s unclear whether any other Chinese-made Nissan models will come here, however Oceania has been identified as a key export market opportunity.
Toyota flags price rises
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By Jack Quick · 07 Oct 2026
The Australian Government’s New Vehicle Efficiency Standard (NVES) is squeezing many carmakers locally and the latest culprit could soon be the best-seller. “Due to the challenging NVES targets for commercial vehicles from 2027 onwards, we cannot rule out price increases,” said Toyota Australia Vice President National Sales, Marketing and Franchise Operations John Pappas. This comes as many of Toyota’s best-selling vehicles in Australia are diesel-powered vehicles. Examples include the HiLux, LandCruiser Prado and the LandCruiser 70 Series, among others. In 2025 Toyota received NVES credits for going below its fleet CO2 target and the company claims it is on track to be in the green this year. However, its result in 2027 isn’t looking so certain. As it currently stands, there are two different NVES CO2 emission targets that reduce every calendar year. ‘Type 1’ vehicles are cars, SUVs or light off-road vehicles, whereas ‘Type 2’ vehicles are utes, vans or heavy off-road vehicles. For 2026 the CO2 emissions targets for Type 1 vehicles is 116g/km and for Type 2 vehicles is 180g/km. However, in 2027 this reduces to 92g/km and 150g/km, respectively. For reference, the current Toyota HiLux SR5 V-Active diesel-powered dual-cab ute has a claimed combined CO2 emissions figure of 191g/km. This is already above the threshold for ‘Type 2’ vehicles in 2026. Toyota claims its sales of electrified vehicles, like electric vehicles (EVs) and plug-in hybrids (PHEVs), is growing, but in 2027 it still may not be enough for it to stay below the fleet CO2 emissions target. When a carmaker is above its fleet CO2 emissions target for the year, it is given fines that it can either pay directly, use credits from previous years, or purchase credits from other carmakers. Pappas’ quote indicates that the fines Toyota incurs will be passed onto the consumer. At this stage it’s unclear how much could be added to the asking price of Toyota vehicles. NVES fines are currently billed at $50 for every gram per kilometre over a model’s limit, per vehicle imported. Using the Toyota HiLux SR5 V-Active as an example, each imported vehicle is on track for a $550 fine in 2026. With over 36,000 HiLux examples sold until the end of August this year, the fines can add up very quickly. The fines can be cancelled through the import of vehicles under the CO2 targets. The brand receives NVES credits or a fine based on the overall fleet of imported vehicles for the respective year. Toyota is far from the first to admit it could increase vehicle pricing due to the tightening CO2 targets. Brands like Ford, Hyundai and Nissan have admitted to this previously. The NVES was implemented at the start of 2025 and there is an upcoming review that may spark further amendments. One change that is already being drafted is select vehicles with a gross vehicle mass (GVM) between 3500kg and 3855kg be included in the NVES from July 1, 2027. This means that the LandCruiser 70 Series may soon contribute to the brand’s CO2 fleet emissions for the NVES. It currently is exempt as it has a GVM of 3510kg. The Tundra is another vehicle that is potentially in the firing line as it has a GVM of 3536kg. Others include the Ram 1500 and Chevrolet Silverado, which both have a GVM of 3505kg. ‘Work vans’ and ‘work trucks’ will continue to be exempt from the NVES though under this draft amendment. “There’s an NVES review coming up and we’ll be contributing to that review through consultation,” said Pappas. “We fully support NVES. We fully support having an ambitious, albeit equitable and pragmatic NVES. “And when you look at the LCV segment, you can see that you’re going to be leaving customers behind because they need those vehicles. “We’ll be consulting government to be able to really look at a more pragmatic, realistic light commercial vehicle target under NVES that is more equitable to the Australian market.”