Isuzu weighs options as NVES nears

ISUZU UTE AUSTRALIA (IUA) appears to be behind the eight ball when it comes to meeting the federal government’s incoming emissions standards.

With a diesel-only ute and SUV line-up – and without an electrified passenger car range to help offset its fleet emissions averages – the Japanese importer is one of few facing New Vehicle Efficiency Standard (NVES) regulations with one arm tied behind its back.

But there is light at the end of the tunnel…

Speaking with motoring media at the launch of the 2025 Isuzu MU-X in Queensland this week, IUA general manager of product planning Sadanori Sugita said multiple options remain at the manufacturer’s disposal, and that all will be explored as it works to meet NVES targets.

“NVES is obviously very challenging for us, but we believe that the government’s direction is the right way to go,” he said.

“We are trying our best to comply with the regulations, but it is a tough and very challenging target for us to meet.”

Expanding on his colleague’s statement, IUA executive general manager of sales and network development Ben Jaeger said that while the company is working to evolve its new energy vehicle offerings, it must do so in a manner that suits the unique Australian marketplace.

“At this point in time, we are taking the direction to retain our current (diesel) drivelines, but that doesn’t mean it will stay like that forever. We have got to explore other avenues. We’re going to have to evolve,” he said.

“We are indeed committed to providing alternative powertrains, to provide a vehicle that can meet those very strict – and I will stress they are very strict – targets.

“At the same time, it is important for us to make sure those solutions are fit for purpose. They must meet exactly what our customers need, and our customers’ needs will not be compromised.

“We will not bring something into the market that isn’t going to perform or sell well just so it ticks a box.”

Globally, Isuzu Ute has a number of more efficient diesel and new energy options available.

In the UK market, a twin-turbocharged 2.5-litre four-cylinder diesel offers 120kW of power and 400Nm of torque while averaging 7.3 litres per 100km on the Combined cycle.

While it offers comparable towing and payload capabilities to the 3.0-litre unit sold locally, IUA public relations manager Mark Harman said it was not deemed as “the right fit” for the demands of Australian customers.

“We are looking at every solution available to us globally to make sure that it works here. A good example of this is the 2.5-litre four-cylinder that the UK took a number of years ago … it didn’t come to this market for very good reason,” he said without clarification.

Mr Harman said the mild hybrid 1.9-litre turbocharged four-cylinder diesel sold in the Thai market was another option under consideration.

Combining a 48-volt battery pack and starter/generator, the unit shaves around 10 per cent from the fuel consumption and emissions figures of the locally available (diesel-only) 1.9-litre engine.

But with rear-wheel drive the only configuration currently available, it is another alternative that may not meet Australian buyer requirements.

“Whether that option is suitable or how we don’t know yet, it is still under study,” said Mr Harman.

 A potential third option available to IUA is the all-electric powertrain introduced at last year’s Bangkok Motor Show.

Soon to be made available in markets including Norway, the full-time four-wheel drive battery electric driveline combines a 66.9kWh lithium-ion battery pack with dual electric motors to provide up to 1000kg payload and 3500kg braked towing capabilities.

The dual-motor driveline combines a 40kW/108Nm front and 90kW/217Nm rear electric motor to offer a total system output of 130kW and 325Nm – and a range of up to 300km.

But, with performance and range figures well short of those of the turbocharged 3.0-litre four-cylinder diesel offered locally, Mr Jaeger said it was unlikely the model would be considered for Australia.

“The vehicle that is going to be released in Norway may not specifically meet the requirements of our (Australian) customers,” he said.

“It is a very different market with different usage requirements and distances, different infrastructure for charging, and all those sorts of things.

“It’s also a different volume market as well.

“(That said) it is one of the technologies being reviewed and it is a decision that still needs to be made.”

With changes in Australian emissions legislation nearing, it seems likely the cost of regulatory compliance will be borne by Isuzu’s customers.

As a diesel-only importer, the payment of emissions credits may be the only option IUA has, assuming of course it cannot meet the proposed targets by other means, or that a change in government resets the parameters.

“We will work with the government that is in place at the time – and that’s all the industry can do as a whole,” added Mr Jaeger.

“Of course, we still believe the targets are challenging. We’re not questioning that at all. It is challenging for the industry given the length of time to develop products.

“But there is no brand out there, including ours, that is not committed to reducing their CO2 emissions. Everyone is committed to doing that.”