2 days Ago By Jason Gregory
The nation's new-car market will undergo a radical shake-up following the introduction of new fuel efficiency standards from January 1. or signup to continue reading While Labor's rejigged CO2 rules are designed to deliver cleaner electric vehicles and a wider choice of models, stakeholders believe they will likely drive up the retail prices on some of Australia's most popular heavy vehicles. The so-called have set minimum pollution standards on carmakers and created a system of fines for those that continue to sell highly emitting utes and 4WDs.
The standards, which apply only to new car sales, are similar to those already in operation in the US and Europe in measuring emissions across a fleet of vehicles in grams of CO2 per kilometre. While they are active in Australia as of New Year's Day, lawmakers will not start the count until 1 July 2025. However, car makers have already suggested that the fines will be passed on to consumers and see an increase in the purchase price of some of the nation's popular models, including the Toyota Hilux and Ford Ranger.
A Federal Chamber of Automotive Industries spokesperson said industry was increasing the number of zero and low-emitting vehicles, but that may not be what many consumers want. "If consumers continue to choose vehicles that exceed the emissions standards then these penalities will apply and the cost of the penalities could be passed on to those consumers," he said. Manufacturers have also said the rules, that set CO2 tailpipe emissions targets for new passenger and light-commercial vehicles sold in Australia, could trigger a decision to scrap some diesel and petrol vehicle lines altogether.
The government plans to conduct periodic reviews of the NVES, which demand manufacturers achieve an average emissions baseline across their fleets to avoid paying fines to the government, starting next year. Prime Minister Anthony Albanese has previously said the standards could save motorists up to $1000 a year at the bowser. However, Nationals leader David Littleproud said "families will suffer as a result" if the cost of popular cars rise from July 1 under Labor's new emissions standards the party says is designed to help the Albanese Government subsidise the price of electric vehicles.
The figures below were created by the FCAI early in 2024 based on 2023 sales and before Labor made changes to its legislation. The body said while it expects prices to increase they will now less than the table suggests. It is believed vehicles with a gross weight of more than 3.
5 tonnes and less than 4.5t will not be required to undergo a carbon dioxide test and would be exempt from the standards. National rural affairs writer for ACM's agricultural print and digital publications, covering federal politics, agri-politics and life in the regions.
2023 National Rural Press Club award winner. Send story tips to jason.gregory@austcommunitymedia.
com.au National rural affairs writer for ACM's agricultural print and digital publications, covering federal politics, agri-politics and life in the regions. 2023 National Rural Press Club award winner.
Send story tips to [email protected].
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