Toyota faces hurdles bringing FJ to Australia

TOYOTA Motor Corporation Australia (TMCA) faces several regulatory and commercial challenges preventing it from introducing the lower-cost LandCruiser FJ model that was revealed late last month and ignited speculation about when, and how, the RAV4-sized off-roader might find its way to local showrooms.

Speaking with GoAuto on the sidelines of last week’s Japan Mobility Show (JMS) in Tokyo, TMCA vice president of sales and marketing Sean Hanley agreed that "there is no doubt that, on looks and the LandCruiser name in Australia, (the FJ) would be very appealing”.

“The hardcore reality we are facing in our country (is) variable regulation, new criteria, New Vehicle Efficiency Standard (NVES).

“We have to look very carefully at our product portfolio, at what we think we’re going to need, what we are going to sell in numbers, and what customers want and need.”

For now, focus markets for the FJ are understood to include Japan, Thailand, and other parts of South-East Asia, though the model has not been entirely ruled out for Australia.

“We are aware of the vehicle. We have looked it. We have analysed it (as) best we can, and we just don’t, right now, believe it is a car that would be suitable for our market,” said Mr Hanley.

GoAuto understands that senior TMCA executives are aware of strong interest in the FJ product and would like to see the model make its way here if compliance issues can be resolved.

The principal hurdle is that the FJ’s sole launch engine – a 120kW/246Nm 2.7-litre petrol four-cylinder – does not meet the Euro 6d emissions requirement that comes into force for all new-generation cars sold in Australia from December.

Euro 6d regulations introduce tougher real-world testing for CO2 and NOx emissions, with compliance a legal prerequisite for type approval. Existing models have until 2028 to comply, but the FJ would be regarded as all-new.

“It certainly is the Euro 6 emissions standard in Australia (stopping the FJ from being considered). That is a fact. That is the law,” Mr Hanley told GoAuto.

“If (the FJ) was Euro 6, I’d reconsider it. If that was a Euro 6 engine, if it does turn out to be that way, which it could … then it is something we could re-examine.”

Toyota has access to Euro 6d-compliant engines that already work with the FJ’s platform, which is shared with the ASEAN-region HiLux Champ model – a low-cost ute not sold in Australia.

While a HiLux Champ was spotted on Victorian roads last week, Mr Hanley said the vehicle does not belong to TMCA.

The Champ is offered with Toyota’s 2GD-FTV 2.4-litre turbo diesel four-cylinder engine, which can be fitted with an AdBlue-type exhaust aftertreatment system that Toyota documents have claimed to enable the unit to meet Euro 6 standards.

While a hybrid or petrol solution could be conceivable, a straightforward substitution with the 2.4-litre diesel may be a cheaper and more practical pathway if TMCA wishes to homologate the FJ for the local market.

But even if a substitute engine is found, TMCA will still need to assess the FJ’s contribution to its overall fleet-average CO2 profile under Australia’s NVES framework.

Under NVES, car-makers with portfolios skewed toward sales of higher-emitting utes and large SUVs risk escalating financial penalties unless offset by strong supply of battery electric vehicles and plug-in hybrids.

Toyota’s hybrid mix gives it a temporary NVES buffer but TMCA will face challenges as NVES tightens, balancing its popular LandCruiser and HiLux lines with hitherto low demand for its battery electric products.

“Customers need the big LandCruiser … customers need the HiLux,” said Mr Hanley.

“We have to be very carefully planned on the product portfolio going forward.”

Equipped with a 2.4-litre diesel, the FJ would likely produce CO2 emissions close to 200g/km, which would substantially exceed the 117g/km NVES soft limit for 2026 for passenger cars and SUVs.

Unlike the Prado, and despite its body-on-frame nature, the FJ is unlikely to qualify for the higher NVES limits available to ‘heavy duty’ 4WDs that can tow at least 3000kg.

That said, NVES remains a balancing exercise for TMCA rather than a prohibition on selling the LandCruiser family in Australia, including the baby FJ.

A final matter concerns compliance with Australian Design Rules (ADRs). It is not yet known whether the HiLux Champ platform, used by the FJ, would pass Australia’s demanding side impact and intrusion standards.

With the FJ unavailable to export markets yet in any case, TMCA is not understood to have started homologation planning in earnest.