Haval, the Chinese brand promoting SUVs in Australia – and latterly the Great Wall Ute – will not develop diesel drivetrains for its product range.
The decision is a blow for the local arm of the company, which sent a delegation to China to argue the case for diesel power in the SUV range.
"The debate about diesel power was a long and robust one. Ultimately the future of that fuel has been decided by the market, the actions of other companies and a growing push for more stringent clean air policies," said Haval Australia Chief Marketing Officer, Tim Smith.
Haval will focus on turbocharged petrol engines and an auto-only strategy for the future, says Smith.
"In the very near future that will be complemented by a mix of hybrid, plug-in hybrid and electric powertrains."
According to the powers that be at Haval, the company's petrol and hybrid drivetrain strategy is in line with trends elsewhere.
"We have already seen reaction from markets like India, where the sale of vehicles powered by diesel engines greater than two litres in capacity have been banned since December last year," says Smith.
"Our team of engineers made a clear case they believe the development of diesel engines had reached its zenith and the era of smaller, more fuel efficient petrol engines and powerful hybrid and electric engines was upon us.
If the company's anti-diesel stand poses a challenge for Haval in Australia, at least the automatic-only policy fits in with the aspirations of SUV buyers here.
"Australia has one of the highest proportions for automatic ownership so this is a welcome move for Australian customers," said Smith.
"Continued development of automatic transmissions means they are not only less stress to drive, but also more efficient and easier to maintain.
"The new H6 SUV due to arrive here in September will come exclusively with a six-speed Getrag dual clutch transmission [DCT].
"The DCT in the H6 will combine the high efficiency of a manual transmission with sophisticated electronics to achieve a clear reduction in fuel consumption and emissions compared to traditional automatic transmissions."