‘I can’t imagine diesel necessarily being a fuel source of the future’: Toyota earmarks hydrogen as a successor to diesel in Australia

Australians love diesel-powered vehicles, but according to Toyota, it isn’t a fuel source of the future.

Toyota Australia Vice President of sales and marketing Sean Hanley forecast that hydrogen will ultimately overtake diesel.

“I think there’s a culture of diesel in Australia first and foremost,” said Hanley.

“I can’t imagine diesel necessarily being a fuel source of the future because the reality is that petrol will do everything it can do, plus some.

“So I think over time diesel is not going to go anytime [in] the next decade, but I think beyond that, … hydrogen will take over diesel eventually.

“We’re kind of setting up for that future.”

In the first eight months of 2025, over 30 per cent of all new vehicles sold in Australia are powered by diesel. For context, just over 40 per cent are powered by petrol.

Currently Toyota offers seven vehicles that are diesel-powered – the HiAce, HiLux, Fortuner, Prado, LandCruiser 70 Series, LandCruiser 300 Series, and Coaster.

However, it only offers one hydrogen-powered car currently – the Mirai hydrogen fuel-cell (FCEV) sedan – which is only offered to select fleets for leasing. It’s not publicly available to purchase.

Toyota did do a pilot program where it had a converted hydrogen combustion HiAce Commuter bus used as a fleet vehicle for CPB Contractors in Melbourne, Victoria during 2023.

Globally the Japanese carmaker is still exploring hydrogen combustion technology through motorsport and various other prototypes.

Hanley notes there are no current plans to introduce a production hydrogen combustion vehicle in Australia thus far.

“We don’t have any plans right now, but we certainly aren’t discounted ICE conversion to hydrogen as another part of the multi-pathway strategy going forward,” said Hanley.

“People are poo-ing hydrogen from left, right and centre at the moment … because it’s like any new technology.

“These things take time. Infrastructure .. sourcing green hydrogen, etc.

“We have an abundance of hydrogen in this country. So it’s kind of sad that I hear those stories because from my mind there’s a great opportunity for this country to be a hydrogen leader, particularly in sourcing green hydrogen also for the take up.

“We’re very much invested in hydrogen. Nothing’s changed, but it’s not a short-term investment.

“So I don’t want people to think that hydrogen is suddenly going to take off between now and 2030.

“But in that 2030, particularly in that 2035 horizon, I truly believe that hydrogen will be our future and that’s where I think you might see a change of diesel technology at that point."

Many brands have moved away from developing hydrogen-fuelled vehicles, but one of the few that continues to offer them is Hyundai.

The Nexo FCEV is a small SUV that, similarly to the Toyota Mirai, is only offered to select fleets for leasing. A new-generation version was revealed earlier this year and it’s understood to eventually make its way to Australia.