Toyota Australia seeks fairer emissions laws amid shifting vehicle market

Toyota Australia is lobbying the federal government for more ‘equitable’ emissions laws, warning that the New Vehicle Efficiency Standard (NVES) could drive up prices for popular diesel models like the HiLux and LandCruiser 70 Series. The company argues that current regulations may unfairly impact regional and rural areas where charging infrastructure is limited.

Market data shows a shifting landscape in the Australian automotive sector. Diesel-powered vehicle sales fell by 25.5 per cent year-on-year to the end of September 2026, with diesel's market share dropping from approximately 33 per cent in 2025 to 24.3 per cent in 2026. Conversely, electric vehicle (EV) sales saw a significant surge, increasing by 117.7 per cent in September, while plug-in hybrid (PHEV) sales rose by 122.7 per cent.

While traditional leaders like the Ford Ranger and Toyota HiLux saw sales declines of roughly 10 per cent, electric models such as the Tesla Model Y and BYD Sealion 7 have seen growth. Toyota's bZ4X EV also reported strong sales performance, contributing to the rising market share of zero-emission and hybrid vehicles.