Australians who were sold defective Toyota vehicles can apply for part of a potentially huge compensation package. 

A Federal Court judgement in April found over 260,000 Australian Toyota vehicles were defective when sold. 

Vehicles including the Toyota HiLux, Prado and Fortuner sold between October 1, 2015 and April 23, 2020 were sold with faulty diesel particulate filters (DPF), which decreased fuel efficiency, caused foul-smelling emissions and increased the wear and tear on engines.

The defect led to a 17.5 per cent reduction in the value of the affected vehicles at the time they were sold.

The court also found Toyota engaged in misleading or deceptive conduct in marketing and selling the cars.

The Federal Court exercised its power to award aggregate damage, ordering Toyota to compensate an estimated 260,000 drivers who purchased defective Toyota HiLux, Prado and Fortuner vehicles in the time period.

The average compensation payout is expected to be about $10,500 per vehicle, meaning Toyota faces a total compensation bill of more than $2.7 billion.

The Japanese automotive giant says it will lodge and appeal against the ruling. 

“Toyota's appeal includes challenges to the factual and legal basis for the award of damages, particularly in circumstances where many of the group members did not experience the DPF issue,” it said in a statement.

It will not have to make any payouts until that appeal has been determined. 

Still, Toyota owners can register their interest to receive compensation under the judgement through an online portal.