Toyota Australia to pay $750 million to settle DPF defect class actions
Toyota Australia has accepted a $750 million settlement to resolve two class actions concerning faulty diesel particulate filters in HiLux, Prado and Fortuner vehicles sold between 2015 and 2025.
Toyota Australia agreed to a $750 million settlement addressing two class actions over defective diesel particulate filters installed in HiLux, Prado and Fortuner models sold from October 2015 to July 2025. The actions involve 264,170 vehicles, including some later sold by original owners, and stem from a Federal Court finding that the DPFs were not of acceptable quality and that Toyota’s marketing was misleading. The defect could cause blocked filters, foul-smelling white smoke, higher fuel use and repeated repairs.
Toyota has offered a free-of-charge remedy introduced in 2020 and will compensate owners as determined by the court. The settlement amount exceeds the company’s $380 million after-tax profit for the year ended March 31 2026. Approval by the Federal Court of Australia is still pending, and the company continues to project record sales for 2026.
Why it matters
The settlement represents a massive financial hit for Toyota Australia and highlights consumer protection issues with diesel vehicles.
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