Australian motorists could start stocking up on thirsty cars and big four-wheel drive vehicles ahead of tougher fuel efficiency standards, a climate expert has warned.
Even before Labor’s latest announcement, less fuel-efficient vehicles with consumption of more than eight liters per 100km were the bestsellers.
All were available as diesels with the torque to tow a boat or caravan, and are a lot more capable than existing heavy-battery electric vehicles.
The Ford Ranger, Australia’s top seller in 2023, was back at number one in January with 4,747 sales, data from the Federal Chamber of Automotive Industries showed.
The Toyota HiLux, Australia’s annual bestseller from 2016 to 2022, ranked second with 4,092 monthly sales, followed by the Toyota LandCruiser in third with 2,541 sales and the Isuzu D-Max in fourth with 2,541 orders.
Australian motorists could stock up on thirsty cars and big four-wheel drives ahead of tougher fuel efficiency standards, a climate expert warns (pictured is a Toyota LandCruiser driver)
Brian Fisher, chief executive of BAEconomics, which has advised the United Nations on climate change, said motorists concerned about new fuel efficiency standards could start stockpiling utes and large four-wheel drive vehicles in the next nine months.
“If they think there are going to be shortages of certain types of vehicles then there is an incentive for people to bring forward the purchase,” he told Daily Mail Australia.
‘I think that will happen. If we start to see those kinds of effects, we’ll see it in the next six to nine months.”
Minister of Climate Change and Energy Chris Bowen and Secretary of Transportation Catherine King on Sunday announced a new vehicle efficiency standard based on the U.S. Corporate Average Fuel Economy (CAFE) standards.
Since the mid-1970s, these US regulations have required car companies to ensure that their fleets of new vehicles meet a fuel efficiency target on average.
From 2026, the fleet will have to average 49 miles per gallon or 4.8 liters per 100 km.
The giant Ford F-Series pickup was last year’s U.S. bestseller, despite the F-150 model getting just 20 miles per gallon, or 12 liters per 100 km.
If a US fuel efficiency policy were introduced in Australia, car companies would be punished if they relied too heavily on large car sales.
“You can offset sales of large vehicles with sales of more efficient vehicles, and that’s probably the way it will work in Australia,” Mr Fisher said.
“If you can’t compensate, you have to pay the fine.”
The Ford Ranger, Australia’s top seller of 2023, returned to No. 1 in January with 4,747 sales, data from the Federal Chamber of Automotive Industries showed
Manufacturers can offset emissions from larger vehicles by selling more smaller cars or developing hybrid or battery-electric versions of utes and four-wheel drive.
This would be part of Labour’s plans to cut carbon emissions by 43 percent by 2030.
“With these emissions standards biting into the end of the decade, given the extent to which the government is talking about reducing emissions, it almost seems like you’re going to have to see a very substantial electrification of the entire fleet to meet those standards.” said.
“I don’t see how you can achieve this goal without substantial electrification of the fleet.”
Mr Fisher said this could mean Ford would completely reconsider importing the Ford F-150 pickup unless only the all-electric Lightning version was sold.
“I would have thought there should be less incentive for them to do that now,” he said.
Labor plans to introduce an Australian New Vehicle Efficiency Standard from January 1, 2025, with a plan to catch up with US regulations by 2028.
The Department of Infrastructure, Transport and Regional Development argued in a frequently asked questions section that Australian motorists could continue to buy four-wheel drive and cars “that can tow my trailer and boat”.
Ford could completely reconsider importing the Ford F-150 pickup unless only the all-electric Lightning version is sold
Brian Fisher, chief executive of BAEconomics, which has advised the United Nations on climate change, said motorists concerned about new fuel efficiency standards could start stockpiling utes and large four-wheel drive vehicles in the next nine months.
‘Yes. A New Vehicle Efficiency Standard allows suppliers to choose how they meet the emissions reduction target,” the report said.
‘In other countries with a new vehicle efficiency standard, 4WDs and utes are still widely available.’
But the Federal Chamber of Automotive Industries warned last year, in response to proposed fuel efficiency legislation, that electric vehicles would have a lower payload than existing diesel engines, which can typically carry more than a tonne.
The car industry lobby group argued that heavy electric batteries would compromise carrying capacity.
“The above-mentioned use case of light commercial vehicles and their payload requirements make it more challenging to electrify their powertrain,” the report said.
“The mass of traction batteries and other EV hardware detracts from the payload available for commercial purposes.”