FCAI

Aggressive vehicle emissions reduction targets risk crippling the new-car market in neighbouring New Zealand – and the Australian automotive industry says the rollout will serve as a warning for local regulators. In January 2021, the New Zealand government announced a drastic reduction in vehicle emissions targets by 2025.

Demand for new cars continued their recovery across Australia for the fifth month in a row, with official March results released today showing steady growth as the Toyota HiLux and Ford Ranger continued to lead the charts and utes filled four of the Top 10 positions.

The federal government has ruled out subsidising private electric vehicle (EV) purchases – however, it may incentivise businesses to invest in zero-emission fleets. The 40-page Future Fuels Strategy discussion paper – published today – outlines the Federal Government’s automotive policy platform, and suggests a focus will be placed on “enabling consumer choice, stimulating industry development, and reducing emissions in the road transport sector.”

The $150,000 instant asset write-off tax incentive introduced by the Federal Government in the lead-up to the coronavirus lockdowns has caused widespread confusion in the car industry about how it applies to motor vehicles. A special investigation by CarAdvice has found most major car companies are reluctant to offer any guidance about which vehicles might be eligible under the scheme scheduled to run from 12 March 2020 to 30 June 2020, the close of this financial year.

Industry analysts have forecast the biggest fall in new-car sales since the Global Financial Crisis in the US, as Australian dealers report the toughest conditions in memory – however the sharp declines are likely to drive mega deals in April. New-car showrooms across Australia remain open – although some have reduced hours – as the industry has switched to a “contactless” sales model.