'We will survive': Isuzu declares its intent to stay in Australia in the face of new government emissions regulations that could punish the Isuzu D-Max ute and MU-X SUV, but a new electric D-Max could lead brand's new era

Isuzu is studying hard in the hope it can pass its toughest test — the federal government's New Vehicle Efficiency Standards (NVES).

With only the diesel-powered D-Max ute and MU-X large SUV in its lineup, Isuzu will be amongst the brands who struggle to meet the government’s future emissions targets without some major changes to its product range.

Currently the brand only offers two engines in its Australian range: the 1.9-litre and 3.0-litre turbo diesels in both the D-Max and MU-X. Isuzu has other options around the world, and Isuzu Ute Australia managing director Junta Matsui said they are all “under study” for introduction here.

At present there are three clear options for Isuzu Australia: a mild-hybrid version of the 1.9-litre engine, a new 2.2-litre four-cylinder turbo diesel and a new all-electric set-up. Exactly what Isuzu will take locally, either some or all of these options, remains up in the air.

Asked specifically about the 2.2-litre engine, which makes 120kW/400Nm compared 140kW/450Nm from the 3.0-litre, Matsui was positive about its potential.

“ Yeah, it's a good product, I think,” he said. “It looks good on paper.”

An Isuzu spokesman said everything is up for consideration as the company looks to avoid potentially costly fines under NVES that could hurt its competitive position as it looks to cement its place amongst the top 10 selling brands in Australia.

“ [The 2.2-litre engine is] under study, we've got a few [other] powertrains under study as well,” the representative explained. “So what we have in place, the plan, is a strategy behind all of this with making these NVES targets. One of those is obviously looking at the existing powertrains that we have coming globally from Isuzu, one of which is that 2.2. But also investigating the probability or suitability for mild-hybrid and battery electric vehicles as well. So Norway is getting their BEV in 2025, this year, it’s coming out very soon and we’ll see if that's suitable for here.”

The new D-Max BEV is about to go on sale in Norway, which already has a well-established EV market, and it uses a pair of electric motors to make 130kW/325Nm. Whether an all-electric ute is viable for the Australian market remains unclear, with buyers clearly preferring diesel engines, although both the BYD Shark 6 and Ford Ranger will introduce plug-in hybrid powertrains in 2025.

Asked for a timeframe when these new options could be introduced, some Isuzu executives suggested it could be as soon as the next two years, putting the mild-hybrid and electric D-Max in local showrooms by the end of 2027.

“It’s a possibility,” Matsui admitted.

While some industry insiders have suggested NVES could lead to the downfall of some brands, and Isuzu is precariously placed with its small range, Matsui made it clear Isuzu is here to stay.

“ We're gonna find a way [to survive], for sure,” he said. “We're gonna make a nice balance. Because, we believe… people aren’t going to change their lifestyle. So [it must be] fit for the purpose. We’re trying to find a nice balance between the fit-for-purpose for the Australian people, and coping with the emissions target. So we try to make the best balance by talking to the government people and talking to the Isuzu development team.”