Analysis of the Labor Government’s preferred new fuel efficiency standards shows the cost of SUVs, 4WDs and utes could increase by up to $25,000 by 2029.


Shadow Assistant Minister for Infrastructure and Transport Tony Pasin MP was joined by local vehicle industry representatives in Mount Gambier today to discuss concerns with Labor’s vehicle emissions reductions targets as outlined in the recently released National Electric Vehicle Strategy.


Under the proposal, penalties will be imposed on popular petrol, diesel and hybrid models to subsidise the cost of electric vehicles.


Mr Pasin said while everyone wants to see cleaner, more efficient cars, Labor’s proposal was too far, too fast and would decimate the Australian motor vehicle industry as we know it and reduce consumer choice.


“Labor’s policy will hit families who rely on SUVs to get their kids to school or sporting carnivals and tradies and farmers who rely on utes to do their job,” Mr Pasin said.


“Labor’s proposed New Vehicle Efficiency Standard is extreme and will add thousands of dollars to the cars that Australians love and need to drive, particularly in the regions. The SUVs, utes and 4WDs that rural and regional Aussies rely on will cost more under Labor,” Mr Pasin.


“These vehicles are also the lifeblood of local car dealerships. Make no mistake, this policy will have severe economic impacts for the entire industry,” Mr Pasin said.


Australia’s top 3 best selling vehicles in 2023 were utes, each facing a carbon tax of $6,150 for the Ford Ranger, $2,690 for the Toyota Hi-lux and $2,030 for the Isuzu D-Max in 2025.


Australia’s top 3 best selling SUVs face a carbon tax of $2,720 for the Toyota RAV4, $3,880 for the MG ZS and $13,250 for the Toyota Landcruiser in 2025.


OGR Dealer Principal Bryce Roberts outlined his concerns about what the policy will mean for his customers and his business.


Mr Roberts said he was concerned that Original Equipment Manufacturers (OEMs) will not have the global capacity to meet the demand sought by NVES in a small right hand drive market like Australia.


“The hard truth is that many OEM’s may not be able to meet the new NVES and with the vehicles we currently enjoy,” said Mr Roberts.


“For the policy to have its intended impact, cars that meet the policies criteria and that are appealing and affordable to consumers will need to be made available in the Australian market in the timeframe proposed which is a stretch. Furthermore, for the automotive industry to pivot so quickly will put great cost and pressure on upskilling its workforce to service and repair the new technology,” Mr Roberts said.


“and, due to production costs and supply shortages, EV’s may remain approximately 30% more expensive than internal combustion engines (ICE) vehicles, even with the new “carbon tax” included.


“When the average Australian can no longer drive where he or she wants, when they want, with who they want as we currently do, lifestyles will be impacted greatly,” Mr Roberts concluded.


Media Contact: Charlotte Edmunds | Ph 8724 7730