Toyota Australia predicts hydrogen could overtake diesel in the next decade

FOR decades, diesel engines have been the backbone of pickups, large SUVs, and vans across key markets. In Australia, the story has been no different, with diesel still powering almost half of Toyota’s local sales. But according to Toyota Australia, the days of diesel dominance could be numbered, with hydrogen waiting in the wings to take its place.

Out of 163,491 vehicles sold by Toyota in Australia during the first eight months of the year, 48.4 per cent were diesel-powered. Heavy-hitters like the Hilux, LandCruiser, Prado, HiAce and Fortuner continue to drive those numbers. The company admits this strong reliance on diesel won’t disappear overnight, but it believes change is inevitable.

Toyota Australia’s vice president of sales, marketing and franchise operations, Sean Hanley, explained that diesel still has a role to play throughout this decade, but beyond that, hydrogen could be the game-changer. He pointed out that petrol models already match diesel in many respects, and in some areas outperform them, which raises questions over diesel’s long-term relevance.

Hanley suggested that between 2030 and 2035, hydrogen-powered Toyotas will start to take over the role diesel currently plays in the brand’s line-up. He said hydrogen ticks all the right boxes; it’s clean, offers a long driving range, and will benefit from much better infrastructure by then. Importantly, he believes it will also become more convenient and affordable for customers, setting the stage for a shift away from diesel technology.

Toyota is not alone in experimenting with hydrogen, but it is one of the few big players still betting heavily on the technology. Many rivals have already abandoned hydrogen development to focus entirely on battery-electric vehicles.

The challenge for hydrogen is not the technology itself – which works – but the lack of refuelling infrastructure. For fuel cell vehicles to become mainstream, hydrogen filling stations will need to be as accessible as petrol stations or EV chargers, and that will require cooperation across the industry, not just Toyota’s efforts.

For now, diesel continues to dominate Toyota’s line-up in Australia, and it will remain an important player for years to come. But if the brand’s forecast proves right, the 2030s could see a new chapter, one where hydrogen finally steps into the spotlight and replaces diesel as the fuel of choice for big vehicles.

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