CEO of the Australian Automotive Dealers Assoc says common sense has won out.
Car dealers say the original ALP plan was unworkable and would distort the market.
New vehicle sales in March were down 7.1 per cent to 99,442.
The Labor Party has backflipped on part of its ''cleaner transport'' policy after 48 hours of anger from car dealers that would have been forced to meet an emissions quota effectively restricting the sale of too many higher-polluting vehicles.
Labor's spokesman for climate change and energy, Mark Butler, said on Wednesday there had now been a change in the approach.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
