British manufacturers yet to commit to lower prices in Australia, despite Free Trade Agreement

Manufacturers that build cars in Britain are yet to commit to lower Australian prices, despite the announcement of a new Free Trade Agreement "immediately eliminating" an existing 5 per cent automotive import tariff.

Affected British-built cars include Nissan's Juke, Leaf, and Qashqai small SUVs, and the majority of vehicles built by Jaguar, Land Rover, Mini, Aston Martin, McLaren, Bentley and Rolls-Royce.

When contacted by Drive, representatives for the relevant manufacturers said trade negotiations were ongoing and it was too early to review pricing.

However, an official statement from the office of the Australian Prime Minister released on June 16 confirmed import duties for British cars have already been waived: “Australian consumers will benefit from cheaper products, with all tariffs eliminated within five years, and tariffs on cars, whisky, and the UK’s other main exports eliminated immediately.”

This announcement, however, appears to have caught car companies off-guard.

A spokesperson for Nissan Australia told Drive: “We need to understand the finer details and dates when this free trade agreement will be implemented, to determine the impact on new vehicle prices for Australian consumers."

Meanwhile, a representative for Jaguar Land Rover in Australia said: “[We] recognise the UK and Australia’s joint ambition to deliver free and fair access to trade. We will consider the details of the agreement in principle once published.”

Bentley said: “We await the final outcome of free trade agreement negotiations.”

Rolls-Royce said: “Rolls-Royce is delighted that a trade deal has been reached but is awaiting further details.”

Aston Martin and McLaren meanwhile said the respective head offices were still being contacted, while a spokesperson for Mini declined to comment.

The only outfit to suggest local buyers could benefit from cheaper prices was Simply Sports Cars Australia, the local importer for Lotus: “We are at this stage seeking further clarification, and cannot confirm anything – however, it’s likely prices will go down.”

Meanwhile Peter Griffin, the head of the Federal Chamber for Automotive Industries – Australia’s peak body for importers – told Drive: “It will be up to each of the car manufacturers to work out how they manage their finances, however this should provide the opportunity for more accessible vehicles.”

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