Chery KP31 diesel PHEV ute: Toyota should have built this vehicle years ago

Chery has officially released the KP31 ute concept. It’s a 2.5-litre turbo-diesel plug-in hybrid (PHEV), which Chery is positioning as a world-first in the dual-cab ute class. The company is also claiming 47 per cent thermal efficiency, along with 1000kg payload and 3500kg towing capacity.

That is not a minor announcement. It’s proper market disruption.

And in a market where so many “new” utes are just recycled thinking with different badges, this is one of the most compelling powertrain ideas in a long time. It’s going on sale in Q4 of this year (2026).

The big questions are:

  1. Should you wait for it?

  2. Is it a big enough knife to slip into Hilux and Ranger’s guts?

On what we know so far: maybe yes to both.

KP31 PHEV will be on sale in Q4 of 2026 with class-leading thermal efficiency from 2.5-litre turbodiesel

Why the KP31 matters

The dual-cab 4x4 ute market in Australia is enormous, and it remains one of the most important battlegrounds in the industry.

More importantly, the market is now clearly open to disruption.

BYD went from zero pedigree in utes to a massive result with Shark 6. GWM’s Cannon Alpha also lifted sharply, and the increase in Cannon Alpha sales from 2024 to 2025 is roughly the same as reported Cannon Alpha PHEV volume in 2025. In plain English: the PHEV appears to be doing the heavy lifting in the growth.

That matters, because it proves the market is willing to move when a brand offers the right combination of novelty, capability and value.

  • Chery appears to have noticed.

  • This probably won’t be a Shark 6-style powertrain

  • This is the key point.

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Chery Australia’s official announcement

No news yet on peak system power, battery capacity or electric vehicle range

Underlying engineering

The KP31 is almost certainly being engineered more like a diesel-led hybrid (think more Cannon Alpha PHEV in concept) than a Shark 6-style execution.

Why?

Because Chery is clearly spruiking the diesel. Hard.

The headline is not “big EV power” or “sports-car acceleration” or “range-extender brilliance.” The headline is a 2.5-litre turbo-diesel, plus a very aggressive thermal-efficiency claim.

That suggests the diesel is the primary propulsion source, not a token engine existing mainly to support the battery and motors.

And frankly, a 2.5-litre turbodiesel would be overkill if this were basically a Shark 6 architecture.

A big diesel in a ute usually means the vehicle is being designed to do actual ute things:

  • tow heavy loads

  • haul weight

  • sit on the highway under sustained load

  • deliver strong mid-range torque

  • survive hard use

In that context, the hybrid system is more likely there to provide:

  • torque fill

  • launch assist

  • low-speed EV running

  • regeneration

  • better urban efficiency

In other words:

If it’s got a 2.5-litre turbo-diesel, Chery is almost certainly building a diesel ute with hybrid assist — not an electric ute with a token engine.

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Amazing that the market’s first diesel PHEV ute is coming from China and not Japan or South Korea…

Probable KP31 powertrain layout (speculation)

This part is still speculation, but it is informed speculation.

The most likely layout is:

  • conventional ladder-frame 4x4 ute platform

  • diesel engine driving the wheels directly

  • proper transfer case / low-range type hardware

  • one electric motor integrated into the transmission (or equivalent) for assist and regeneration

That would be the simplest and most logical way to preserve proper towing and off-road capability while adding PHEV functionality.

The alternative — a more electric-led, e-motor-dominant setup — makes much less sense with a 2.5 diesel and this kind of marketing pitch.

Likely outputs? Still unknown. But a reasonable production guess would be:

  • ICE: roughly 150–200kW and 500–600Nm

  • electric side: roughly 100kW

That would make it competitive on paper with the current crop of electrified utes, while leaning into diesel’s strengths in the real world.

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Towing capacity for the Chery KP31 will be 3500kg max, and payload peaks at 1000kg

About the 47 per cent thermal-efficiency claim

This is where people get confused, so let’s be precise.

First: 47 per cent thermal efficiency is theoretically possible for a modern diesel at a specific operating point. It is a big number, but it is not physically impossible.

Second: it will almost certainly be a peak figure measured under ideal conditions — not what the engine delivers all day, every day, with your caravan on the back and a headwind in Dubbo.

So this is best understood as:

  • an engineering/marketing headline

  • at a particular load and rpm

  • useful as a signal of technical ambition

  • not a direct proxy for your real-world fuel consumption

Also important: this thermal-efficiency claim is not the same thing as the PHEV system contribution. The hybrid system will improve overall vehicle efficiency in use, but “47% thermal efficiency” is almost certainly referring to the diesel engine/powertrain’s peak thermodynamic performance, not the combined hybrid system in everyday driving.

Finally, the number of turbos is still unknown. A twin-turbo setup is plausible, but the 47% claim does not prove it. Turbo count is more about torque delivery, response and packaging than it is about thermal-efficiency headlines.

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Powertrain configuration is yet to be revealed - but the form factor and statements so far strongly suggest ‘diesel first’ with ‘hybrid assist’ design intent

Why this ute could be commercially successful in Australia

A new ute does not need to be perfect to win in Australia.

It just has to avoid screwing up the three big things.

1) Styling

It cannot look like a captain’s call gone wrong (ie - Tasman). The KP31 concept, at least visually, looks tough, modern and intentional. If the production version stays close, that’s a big tick.

2) Powertrain

You cannot launch a “new” ute with a mediocre drivetrain and expect the market not to notice (Tasman). Chery’s diesel PHEV pitch is the opposite of mediocre. It is differentiated, and if the execution is competent, it will attract attention immediately.

3) Price

You cannot be over-priced (Tasman). The ute market is primed for disruption because ute pricing is getting out of hand. Chery’s broader pricing in Australia suggests it understands value positioning, and if KP31 lands aggressively, established players will have a problem.

That’s the opening.

And right now, Chery looks more willing to attack that opening than some of the legacy brands look willing to defend it.

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Chery appears poised to be a real threat to Hilux, Ranger, D-MAX and Triton … provided the company sidesteps making Kia’s blunders with Tasman

Should you wait for the KP31 to land?

If you are in the market for a dual-cab and you care about:

  • proper towing and payload capability

  • diesel torque

  • reduced urban fuel burn

  • some EV capability around town

  • and you are not desperate to buy tomorrow

…then yes, this is absolutely a vehicle worth waiting to assess.

But “worth waiting for” is not the same as “guaranteed winner.”

There are still major unknowns:

  • exact power and torque outputs

  • battery size

  • EV-only range and the test standard used

  • driveline layout details

  • pricing

  • refinement

  • real-world towing behaviour

  • long-term durability

At the moment, the KP31 is a very promising concept backed by a very smart headline.

The production details will decide whether it is a disruptor or just another interesting idea.

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This is a concept car at this stage, clearly, but even if they dial it back a bit for production, the KP31 looks like a serious ute, not a pretender

Bottom line

Chery appears to have identified something obvious that too many established brands have ignored:

A lot of dual-cab buyers still want diesel capability — but they would happily take hybrid assistance if it improves efficiency, drivability and urban usability without gutting towing or off-road credibility.

That is the KP31 pitch in one sentence.

If Chery delivers this in production form, with sharp pricing and no obvious compromises, KP31 could be one of the most important ute launches in Australia in years.

And if they pull it off, the incumbents won’t be able to dismiss it as a gimmick.

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