Nissan expects diesel utes in Australia well into the late 2030s as Navara Pro PHEV nears

Diesel to survive into the late 2030s, says Nissan

Nissan Australia expects diesel-powered utilities to remain an important part of the local new-vehicle market until at least the late 2030s, despite growing demand for electrified alternatives and tightening emissions rules. GoAuto reports the company's position was set out during a recent Navara Pro plug-in hybrid development briefing, where Nissan Oceania managing director Steve Milette argued conventional diesel and plug-in hybrid powertrains have considerable scope to coexist. ¹²

"First of all, diesel will be a thing in this market for years to come, and so I think in the ute segment you'll see diesel late 2030s," Milette told GoAuto. "We're going to find the right balance I think between these powertrain options that we have." ¹²

According to GoAuto's report, Nissan's forecast reflects its view that traditional diesel customers in agricultural, regional and heavy-duty commercial applications will continue to require the attributes of internal combustion, particularly where charging infrastructure is limited and established diesel fuel storage and supply arrangements suit their operations. "It could be agricultural, and they you know what they fill the tractor with is what they fill the truck with, and so we see that there's an opportunity for both powertrains," Milette explained. ¹²

Navara Pro PHEV: Australian specifications and timing

The forecast comes as Nissan prepares to introduce its first electrified utility to Australia. GoAuto reports the Chinese-built Navara Pro PHEV is scheduled to arrive in the second half of 2027. Unlike the diesel-powered D27-series Navara, which shares its underpinnings with the Mitsubishi Triton, the Navara Pro PHEV is based on the Chinese-market Dongfeng Z9 and has been extensively modified to meet Australian requirements. ¹²

Nissan has specified a unique 2.0-litre turbocharged petrol engine and eight-speed automatic transmission for the Australian model, replacing the smaller 1.5-litre arrangement offered in other markets, GoAuto reports. The revised powertrain produces preliminary combined outputs of 300kW and 800Nm, while retaining conventional low-range four-wheel drive hardware, mechanical differential locks, a one-tonne payload and a 3500kg braked towing capacity. ¹²⁴

Milette told GoAuto that some traditional diesel buyers are already shifting towards plug-in hybrid utilities, and that Nissan, as a mass-market brand, expects to gain "pretty significant volume" in the electrified ute segment. The company has not yet indicated what proportion of Navara sales it expects from PHEV variants, and GoAuto notes pricing and final Australian model grades have not been confirmed. ¹²⁴

Body configurations and fleet ambitions

In a companion report, GoAuto says Nissan Australia has confirmed the Navara Pro PHEV will initially arrive exclusively in dual-cab pick-up configuration, though alternative body options remain under investigation. "It's certainly within scope, but not for launch," Nissan Australia general manager of total customer satisfaction and engineering John Galvin told GoAuto. "There is potential, but at launch, double cab pick-up will be what we bring to market." ⁴

Asked whether the positioning of the battery and charging components would prevent an alloy tray or service body conversion, GoAuto reports Galvin indicated no fundamental packaging obstacle had been identified: "I don't think we have that constraint." That matters in a market where cab-chassis configurations remain popular with tradespeople, agricultural operators and commercial fleets requiring specialised bodies. ⁴

Larger commercial fleets are also a confirmed target, with preliminary engagement underway ahead of the model's expected second-half 2027 arrival. "Absolutely it is part of our commercial plans," Galvin told GoAuto. "It is a genuine, very capable four-by-four that has the benefits of electrification." He added that the vehicle must be positioned competitively to be a mass-market player, and that it can serve both lifestyle "glam ute" buyers and tradies needing towing capability. ⁴

NVES pressure shapes the mix, not diesel's fate

Nissan's outlook comes as manufacturers face increasing pressure to reduce fleet-average carbon dioxide emissions under Australia's New Vehicle Efficiency Standard, which progressively tightens permissible emissions targets. GoAuto notes the regulations do not prohibit diesel utilities but create additional pressure for manufacturers with diesel-heavy portfolios to introduce lower-emission alternatives. ¹²

In an interview conducted by CarExpert and published by 7NEWS in August 2026, Milette confirmed Nissan's provisional NVES liability of around $10.8 million in the scheme's first six months, calling it a public number, and said the company is shifting its mix towards more NVES-friendly vehicles rather than pricing the standard into individual vehicles. He said buying credits from other manufacturers remains an option, but Nissan wants to be as self-sufficient as it can be. ³

Nissan Oceania head of communications Steve Coughlan said in the same CarExpert interview published by 7NEWS that with V8 Patrols and diesel Navara in market, a full-year 2026 deficit would likely follow, and Milette added that Nissan has a good understanding of its position through to 2030, with the objective of moving out of deficit in its mid-term plans through mix shifts such as the two-wheel drive e-Power X-Trail launched from September and future electrified products. ³

"I want to offer to the marketplace the products that they want. And for as long as they will want diesel utilities, diesel SUVs – if that's the thing – if they want to buy Patrols, then that means I need to offset with my portfolio or with trading credits from the competition," Milette said in the interview published by 7NEWS, underscoring that the company views diesel demand and emissions compliance as compatible rather than contradictory objectives. ³

Context: a two-track Australian ute market

GoAuto's analysis suggests electrification will progressively expand the utility market rather than immediately displace conventional diesel models, with diesel and electrified utes competing for overlapping but distinct customer groups. The report contrasts Nissan's position with brands moving more aggressively towards electrification, and highlights challenges for Isuzu Ute Australia, which recently confirmed it will not introduce the battery-electric D-Max locally during the coming model generation. ¹²

Nissan believes the Navara Pro PHEV's combination of 3500kg towing, one-tonne payload and low-range four-wheel drive will broaden plug-in hybrid appeal beyond the lifestyle-orientated market. Milette told GoAuto there are "traditional diesel buyers that we feel are already shifting and will continue to shift towards highly efficient plug-in hybrid utilities," while acknowledging others will stay with diesel for practical reasons. The broader brand context is a challenge: CarExpert's interview published by 7NEWS reports Nissan fell to 12th place in the Australian market in 2025 with 35,511 sales and a 2.9 per cent share, making the new electrified utility a significant part of the company's local product push. ¹²³⁴