New PHEV option for Isuzu D-Max and MU-X

Plug-in hybrid powertrains could be introduced to Australia by Isuzu Ute as part of the Japanese commercial vehicle brand’s tough fight to meet new CO2 reduction targets.

Until now, PHEV/EREV had not been touted by Isuzu Ute Australia (IUA) as clean tech powertrain options to meet the New Vehicle Efficiency Standard (NVES).

IUA has acknowledged three potential powertrain options to help it combat NVES: a 1.9-litre mild hybrid, a 2.2-litre turbo-diesel and a battery-electric D-Max EV that goes on-sale in Norway later this year.

The EV has previously been confirmed for Australia and at this week’s MU-X launch, it was forecast by IUA to be arriving locally “in the near future”, although not necessarily in the same spec as the Norwegian version.

When pressed on other potential options such as plug-in and range extender hybrids of the type now rolling into the market in the BYD Shark 6, GWM Cannon Alpha and Ford Ranger PHEV, IUA managing director Junta Matsui confirmed that technology was on the table.

“Of course, we are talking to Isuzu and that’s one of the options,” Matsui told carsales.

“As a future option it’s still open.

“Of course it’s something we need.

“But I’m sorry it’s not something we are able to disclose, our future product plan yet, but of course we are under discussions, under considerations.”

Perhaps Isuzu could lean on Mitsubishi Motors for the longitudinal petrol-electric PHEV technology it’s developing for its own 4x4s like the Triton ute.

Japanese trading giant Mitsubishi Corporation has substantial shareholdings in both automotive brands, so there is a connection.

Despite record demand for the MU-X SUV and D-Max ute in 2024, which landed it eighth on the sales ladder, IUA is commonly judged to be a prime candidate to fall foul of the NVES because of its total current reliance on high-CO2 diesel vehicles.

That would mean hefty fines and the potential to fall out of the market all together if profitability collapses.

But defiant IUA executives at this week’s MU-X media launch insisted the brand was in Australia to stay.

“We’re going to find a way for sure,” Matsui said.

“We try to find a nice balance between being fit for purpose for the Australian people and coping with the NVES targets.

“So we try to make it the best balance by talking of course to the government people and talking to the Isuzu development team, to try to find the solutions.”

The New Vehicle Efficiency Standard (NVES) was introduced on January 1 and starts monitoring CO2 emissions as of July 1.

The scheme is designed to gradually strangle CO2 emissions by reducing limits annually and handing out fines for those brands that exceed them.

To avoid heavy financial penalties IUA will have to try and balance the penalties accrued by its diesel engines with zero and low emissions powertrains, cover its penalties by buying credits from EV brands, or drop its high-emitting engines.

Asked whether IUA would inflate prices to cope with fines or the costs of credits, Matsui prevaricated.

“We haven’t decided anything yet, frankly speaking,” he said.

“We leave our options open.

“We try to minimise the impact to the market for sure.

“We’re talking to the product development team, talking to Isuzu in Japan, and of course we are talking to the government side.

“Because not many details have been disclosed yet, even though NVES is going to start from July … our team is talking to the government side so many times but not much detail determined yet.

“So we need more discussion with the government side, to try to find the best solution for the Australian market, for our side and for the government as well.”

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