Isuzu Ute Australia has introduced a new 2.2-litre diesel engine to its D-Max and MU-X range, signaling a significant shift in its powertrain strategy and potentially casting doubt on the future of its well-known 3.0-litre diesel engine.
The move reflects the growing pressure on automakers to meet Australia’s tightening emissions targets while balancing the demands of buyers who rely on powerful diesel utes and SUVs for towing, work, and fleet use.
A New 2.2-Litre Diesel Arrives
The new 2.2-litre RZ4F-series engine replaces Isuzu’s short-lived 1.9-litre unit and delivers 120kW of power and 400Nm of torque. Although this is less than the 3.0-litre’s 140kW and 450Nm, the new engine retains the ability to tow up to 3500kg and comes paired with an eight-speed automatic transmission.
Isuzu has also added idle-stop technology to both the 2.2-litre and 3.0-litre engines, aimed at improving fuel efficiency and reducing CO2 emissions, an increasingly important factor under Australia’s New Vehicle Efficiency Standards (NVES).
Meeting Emissions Targets for Now
The introduction of a smaller engine helps Isuzu buy time under current emissions regulations. The 2.2-litre engine records 174g/km of CO2 in the D-Max and 177g/km in the MU-X, comfortably below the 2025 NVES threshold of 210g/km.
However, those standards are set to become much tougher. The emissions cap will fall to 187g/km next year and then to 150g/km by 2027. That means even the new engine will soon exceed the limit, and Isuzu could face penalties on every vehicle sold, costs likely to be passed on to customers.
The current 3.0-litre engine already sits at 187g/km in the D-Max and 200g/km in the MU-X, putting it on the edge of compliance. This raises serious questions about whether the larger engine will remain viable in Australia without significant changes.
Electrification Still Uncertain
Isuzu has confirmed that production of an electric version of the D-Max has begun in Europe, but its arrival in Australia remains unclear. The brand is monitoring local demand for battery electric vehicles (BEVs) and says future product decisions will depend on consumer interest.
Meanwhile, competitors are moving quickly toward electrification. Plug-in hybrid utes like the BYD Shark 6 and Ford Ranger PHEV emit as little as 46g/km and 66g/km respectively, well below future NVES targets and free from associated penalties.
What This Means for Tradies and Fleet Buyers
For tradies, small business owners, and fleet managers, these changes highlight a shifting landscape. Diesel engines continue to deliver strong performance and towing capacity, but future costs and compliance issues could make hybrid or electric alternatives more appealing.
If you’re considering how a novated lease fits into your next vehicle decision, it’s worth understanding how a novated lease works for both diesel and electrified models. Salary packaging through novated leasing can help offset future cost increases, and with tightening emissions standards, choosing a more efficient vehicle could also reduce operating expenses.
Fingo’s novated car lease calculator can help you estimate repayments and compare different options, whether you’re looking at a traditional diesel ute or exploring the latest plug-in hybrid or EV alternatives.
The Road Ahead for Isuzu
Isuzu’s 2.2-litre diesel marks a step towards lower emissions and improved efficiency, but it may only be a short-term solution. As regulations tighten, manufacturers and buyers will need to rethink powertrain choices.
For now, the future of Isuzu’s iconic 3.0D engine remains uncertain. What’s clear is that the ute market is entering a period of change, and buyers who understand their financing options, especially through novated leasing, will be best placed to adapt.
Plan ahead with Fingo. Explore your options with a novated lease or calculate potential savings using our novated car lease calculator.