Toyota Australia says its new LandCruiser Hybrid is likely to fall on the penalty side of Australia’s New Vehicle Efficiency Standard (NVES) regulations, but its broader hybrid sales should see it avoid any fines.
Scheduled to arrive in Australian showrooms in March next year in two model grades – with final details including pricing yet to be announced – the LandCruiser Hybrid will not be within emissions limits as an individual model.
“It’s a heavy vehicle, so it’s likely that it’ll probably incur some penalty – but that’s okay,” said Sean Hanley, Toyota Australia vice president of sales, marketing and franchise operations, told media including CarExpert.
“We can self-sustain and offset that with other vehicles,” Mr Hanley added.
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“We have not walked away from decarbonisation, but you’ve got to do it in a way to take people on the journey, otherwise they just hang on to what they’ve got.
“People aren’t going to stop towing caravans – it’s up to us to make sure we’ve got a product for them that works in NVES.”
The NVES regulations came into effect on January 1, 2025, with limits on the amount of carbon-dioxide (CO2) permitted across each automaker’s range.
This means the brand’s total average CO2 emissions determines whether a financial penalty – applied from July 1, 2025 – is applied.
Where automakers are ahead, such as electric-only brands like Polestar or Tesla, they earn credits, which can be sold to other automakers to offset their penalties.
Polestar Australia boss Scott Maynard told media including CarExpert earlier this year it had already been approached by other automakers wanting to buy some of its credits.
The LandCruiser Hybrid sold overseas has a combined fuel claim of 10.9L/100km, more fuel than the 9.9L/100km figure for the diesel-powered LandCruiser currently found in Australian showrooms.
A CO2 emissions figure isn’t yet available, but the diesel-powered 300 Series emits 235g/km – above this year’s 210g/km limit for light commercial vehicles and large off-roaders.
The hybrid LandCruiser 300 Series will join hybrid-heavy Toyota Australia showrooms, after the company dropped petrol-only engines across most of its lineup in 2024 – including its best-selling RAV4 SUV.
Posting a record 241,296 sales, the brand sold 118,000 hybrids here last year, enough alone to beat second-placed Ford’s diesel-dominated 100,170 total.
“The good news is when you’re selling nearly half of your vehicles [with] hybrid right now, it’s advantageous for Toyota when you add the product portfolios we’ll have over the next two or three years,” said Mr Hanley.
“More BEVs, more plug-in hybrids, hybrids – not so much this car, but other hybrid vehicles, you know, [and] to a very small degree, fuel cell.”
Among those, per overseas reports, could be a hybrid version of the HiLux ute launching in 2026. This could give Toyota an alternative to electrified utes such as the Ford Ranger PHEV, BYD Shark 6 and GWM Cannon Alpha.
A hybrid version of the new-generation LandCruiser Prado is also sold overseas using a version of the ‘i-Force Max’ powertrain found in the Tundra full-size ute sold here as well as the 2026 LandCruiser 300 Series Hybrid.
Unlike those larger models, however, it features a turbocharged four-cylinder (and not V6) petrol engine.
It’s not confirmed for Australia, but the RAV4 SUV, one of the passenger models to switch to hybrid-only power in 2024, has been announced with a plug-in hybrid for the new generation due here in the first half of next year.
This will help reduce the emissions of the overall Toyota Australia lineup, enabling ‘heavy’ vehicles such as the LandCruiser 300 Series, to remain in showrooms.
“We can start to off-balance penalty versus credit,” Mr Hanley said.
“We’re still aiming to be self-sustainable in that environment and be able to offer people the cars they want.”