Under a new Vehicle Efficiency Standard, each vehicle manufacturer has a set average CO2 target for all new cars they produce, which they must meet or beat. Over time, the CO2 target is lowered and in order to continue to meet or beat the target, car companies must provide more choices of fuel-efficient, low or zero emissions vehicles.
The target is applied nationally on average. Suppliers can still sell any vehicle type they choose, including SUVs, 4WDs, utes and vans, but they’ll need to sell more efficient models to offset any less efficient models they sell.
With the introduction of a Standard, customers will have more choice of fuel-efficient, low or zero emission new cars. Over time, this technology will also become available in the second-hand market where 70% of Australians buy their cars. This means that a growing number of Australians will have access to cheaper to run cars and savings at the bowser.
Information for drivers | Department of Infrastructure, Transport, Regional Development, Communications and the Arts