"Diesel will be phased out in our passenger cars in 2018", Johan van Zyl, president of Toyota Motor Europe, said in Geneva, where Europe's first major vehicle show of the year opens this week.
A statement from the car-maker clarified that it would retain diesel power only for its LandCruiser, Prado, HiLux and other light commercials.
On the eve of this week's Geneva Motor Show, Europe's first major vehicle show of the year, Toyota said it will stop selling diesel cars in Europe, beginning the phase-out this year.
Mr van Zyl added: 'Toyota has been pioneering hybrid electric vehicle technology for more than 20 years.
The all-new Toyota Corolla has today made its debut at the Geneva global motor show, kick-starting a new generation for the brand's best-selling vehicle.
"The more hybrids we sell, the better our chances", Toyota Europe chairman Didier Leroy said.
Toyota said the next generation Toyota Auris, to be built at the firm's Burnaston factory in the United Kingdom as part of a major £240million investment, would not include a diesel option, but would include two electric hybrids.
It's a logical business decision, then, when diesel models are clearly rapidly declining while demand for hybrids is increasing.
Toyota has started phasing out diesel engines from its cars in Europe.
Diesels will be phased out across the board so that by the end of this year customers of passenger cars will no longer be able to specify a diesel.
The vehicle firm said that 2017 hybrids represented 41 percent of Toyota Motor Europe total sales. "In contrast, Toyota's diesel mix on passenger cars was less than 10% in 2017". Toyota has already moved ahead with the plan to phase out these models from the European market with the launch of its new Auris hatchback which will be offered with two hybrid and one gasoline powertrains. In our latest new model, the Toyota C-HR, HEVs accounted for 78% of sales a year ago. In contrast, hybrid electric cars now represent nearly 50% of Toyota Ireland's vehicle sales mix.
Toyota is trailing its main rivals Nissan and Renault in 100-percent electric cars but has vowed to catch up through sustained investments in the emerging technology.