The Japanese vehicle giant revealed the change in strategy at a briefing on the eve of the Geneva Motor Show in Switzerland.
In 2017, Toyota Motor Europe registrations rose 38% to 406,000 units, of which hybrid electric vehicles (HEVs) made up 41% of total sales. "We will not develop new diesel technology for passenger cars, we'll continue to focus on hybrid" vehicles, he added.
The Japanese company is the world's third largest vehicle manufacturer but it has always struggled to match that impact in Europe.
Since then, their HEV sales substantially exceed diesel sales.
The decision, the first by a global manufacturer, means there will effectively be no new diesel Toyota cars on sale in Ireland next year. Diesel and petrol has played such a big part in the Irish motoring psyche that it is going to take some time for us to evolve towards hybrid and electric.
Toyota's hybrid model sales in Europe jumped 45 percent previous year.
Last week it was reported that Fiat Chrysler - which also owns Jeep, Maserati and Alfa Romeo - would be ditching the under-fire fuel type from 2022.
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The CEO of German automaker Volkswagen says businesses like his need clarity about new trade measures announced by the Trump administration before they can decide what to do. For now, the company will release its Auris (Corolla based hatchback) without any diesel option while offering two hybrid options in Europe.
The current Auris powertrain line-up consists of five conventional engines and one hybrid powertrain.
In a statement later, Toyota confirmed: 'At an executive meeting with media on the eve of the Geneva Motor Show, Toyota shared the next step of its powertrain strategy in Europe. It will slowly phase out the diesel models from its lineup over the course of this year. Customers have a choice of a 122-hp 1.8-liter or a 180-hp 2.0-liter hybrid powertrains.
LED lights at the front and rear contribute to modern, edgy looks that follow the similarly styled Camry and C-HR.
Toyota will still offer diesel engines in commercial vehicles (Hilux, Proace and Land Cruiser) to meet customer needs.
Toyota bosses also called on the European Union - as well as the United Kingdom government- to come to a sensible agreement over Brexit that would guarantee frictionless tariff free trade.