New Vehicle Efficiency Standard welcomed by car industry after tweaks

The car industry has reacted positively to changes to the Federal Government’s controversial new emissions targets. Tweaks include softer targets for utes and 4WDs.

The car industry has cautiously welcomed the Federal Government’s softer new vehicle efficiency targets.

The New Vehicle Efficiency Standard, which will be introduced to parliament tomorrow, includes concessions for work utes and four-wheel-drive wagons.

CO2 targets have been tweaked for utes, while some 4WDs, which originally had to meet passenger car targets, will be reclassified as commercial vehicles.

They include vehicles such as the Ford Everest, which is essentially a Ranger ute with a roof, and the popular Toyota LandCruiser, which is used extensively by farmers.

Federal Chamber of Automotive Industries chief executive Tony Weber, who was controversially frozen out of government briefings and the press conference because of his strident criticism of the standard, said the new target was “a step in the right direction”.

“The FCAI has made its position clear on this issue and it’s good to see that government has moved in part to our position to get a better outcome for consumers,” he said.

Car industry heavyweights Toyota and Hyundai, who both attended the announcement, were supportive of the new plan, which will take force from January next year. Penalties and credits won’t be introduced until the middle of next year.

The Motor Trades Association of Australia was upbeat about the new standard.

Chief executive Matt Hobbs said the association was pleased the government had made concessions based on industry feedback.

The government has toned down its targets for Australia’s most popular vehicles. Picture: Mark Bean.

He said the changes would reduce the “very real risk” of price rises and reduced access to popular vehicles.

The amended standard would “better reflect the country’s love of utes and SUVs while preparing for an EV future,” he said.

“We all intend to do our part in decarbonising the country’s transport sector. But consumers must come first, and we believe the adjustments to the policy strikes this delicate balance,” he said.

He said the proposed standard was still “ambitious and challenging” for the industry but “workable.

The new standards make concessions to four-wheel-drives such as the Ford Everest, which is a spin off from the Ranger ute. Picture: Supplied.

Toyota, which was a vocal critic of the proposed standard in its original form, welcomed the changes.

Toyota Australia President and chief executive Matthew Callachor said the company supported an “ambitious fuel-efficiency standard that is calibrated to the unique requirements of the Australian market and leaves no-one behind”.

“We welcome the willingness of the Federal Government to consult on this important public policy and to make changes that represent a positive step forward,” Mr Callachor said.

“Even so, Toyota and the industry face huge challenges that must be addressed before these significant reductions can be realised,” he said.

Hyundai chief operating officer John Kett said the standard struck “the right balance between ambition and practicality”.

“With this standard in place, Hyundai dealers will have great vehicles to sell, customers

will have great vehicles to drive, and the automotive industry will be playing its part to

reduce emissions in line with Australia’s commitment to decarbonise,” said Mr Kett.

Behyad Jafari, chief executive of the Electric Vehicle Council, welcomed the changes. Picture: Supplied.

Tesla and the Electric Vehicle Council, who also attended the press conference, backed the plan.

Electric Vehicle Council chief executive Behyad Jafari said the announcement was “a great day for Australia”.

“Everyone wants these standards in place so we can get on with providing Australians with lower fuel bills and a greater choice of particularly the most efficient, the latest and greatest electric vehicles,” he said.

Tesla policy and business development boss Sam McLean, said nobody “had left with everything they wanted” in discussions with the government.

“This is a very moderate standard that takes Australia from being really last place in this transition to the middle of the pack,” he said.

He described the new plan as “a very solid compromise”.

Originally published as New Vehicle Efficiency Standard welcomed by car industry after tweaks