Toyota Settles $750 Million Class Action Lawsuit Over HiLux and Prado DPF Issues

Toyota Australia Settles $750 Million Class Action Over Defective DPFs

Toyota Australia has reached a $750 million settlement agreement to resolve two class action lawsuits involving faulty diesel particulate filters (DPFs) installed in HiLux, Prado, and Fortuner vehicles. The settlement covers 264,170 vehicles purchased in Australia between October 1, 2015, and April 23, 2020, including those subsequently sold by their original owners.

A spokesperson for Toyota Australia confirmed the settlement, pending court approval, emphasizing the company’s commitment to assisting affected customers. The free-of-charge remedy, available since 2020, underscores Toyota’s dedication to customer trust, which has been a cornerstone of the brand for over 70 years.

The original Williams class action, initiated in 2019, encompasses buyers who acquired affected vehicles during the specified period, including second-hand purchasers. The Taylor class action, launched in July 2025, focuses on owners who privately bought affected vehicles between April 24, 2020, and July 31, 2025, directly from the original owners.

Customers impacted by the faulty DPFs are urged to contact their legal representatives for further guidance on the settlement.

Background and Resolution

The $750 million settlement surpasses Toyota Australia’s previous record profit, highlighting the significance of the case. The agreement awaits approval from the Federal Court of Australia.

Diesel particulate filters (DPFs) are designed to trap soot from the exhaust of diesel engines, burning it off periodically through a process called regeneration. Toyota Australia introduced DPFs to diesel HiLux vehicles in October 2015.

Following the class action lawsuits, the Federal Court determined that the affected vehicles did not meet acceptable quality standards due to defective DPF systems. Additionally, Toyota was found to have engaged in misleading conduct during the marketing and sale of these vehicles.

The defects in the DPFs could lead to blockages, causing issues such as excessive white smoke, higher fuel consumption, and frequent unscheduled maintenance and repairs.

The affected HiLux models feature 2.4-litre and 2.8-litre turbo-diesel engines, while the Prado and Fortuner share the 2.8-litre engine family. Toyota implemented several measures to address the issue, including a manual DPF regeneration switch and updated exhaust system hardware and software.

Legal Proceedings and Compensation

The Federal Court initially assessed the vehicles’ diminished value at 17.5% of their average retail price, a figure later reduced to 10% by the Full Federal Court in 2023. However, the High Court ruled in 2024 that the reduction was unwarranted, prompting a reassessment of compensation by the Federal Court.

Despite the challenges posed by the DPF issues, Toyota Australia continues to offer diesel HiLux models powered by the 2.8-litre turbo-diesel engine, now equipped with 48V mild-hybrid technology in select variants. The latest Toyota Prado, introduced in 2024, also features this technology across all trim levels.

Looking ahead, Toyota Australia anticipates a strong finish to 2026, aiming to maintain its position as the country’s top auto brand for the 31st consecutive year. The company remains committed to delivering high-quality vehicles and exceptional customer service.

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