Fuel Efficiency Standards For Australia

Fuel efficiency standards are commonly centred around the idea of minimising the average fuel efficiency of cars being imported or manufactured in a particular country. In Australia, given we have no locally manufactured vehicles, it’s strictly concerning the standards of imports. Being an average, fuel efficiency standards are about determining the baseline level of a manufacturer’s average car. In saying that, it’s not about ensuring that every car must be below a certain threshold. 

On a very simplified level, imagine Toyota imported 10 cars into a country with fuel efficiency standards. To meet those standards, they couldn’t import 10 Landcruisers, because they consume too much fuel, and their emissions would be too high. So, to balance it out, they import a couple of electric cars, a few small cars, and the rest are Landcruisers (or other large cars), meaning that the targets are met, whilst still allowing them to import ample 4WDs to meet their demand. 

So, at its core, the concept of fuel efficiency standards ensure that vehicle importers are innovating and manufacturing quality, environmentally friendly vehicles, whilst still meeting demand. 

Maybe you’re looking to go a little greener with your next car purchase. Electric and hybrid cars are increasing in popularity year over year, to the point where their demand is out of control, and wait times on purchases are blowing out to more than a year. 

For lots of us, we’re in a bit more of a rush to get a new car, which often leads to us giving up and purchasing a car that’s more available. 

Here’s the thing. With the introduction of fuel efficiency standards, car companies are required to ensure that they are importing adequate amounts of highly efficient cars, to ensure that they can still bring their higher emission counterparts. 

According to the Managing Director of Volkswagen Group Australia, Paul Sansom, Australia’s lack of efficiency standards means that manufacturers aren’t interested in introducing their electric vehicles (EVs) into the Australian market, due to it being more necessary in other countries. However, with the implementation of these standards, manufacturers will be pushed to make their line of offering more efficient in general, forcing them to commence the importation of cars that don’t rely on fuel at all – EVs.

With this increase in EVs, it’s not just a good thing for the environment. What’s the largest barrier to EV purchasing? Cost. 

With basic economics in mind, this increase in supply will bring down both demand, and prices, making it more affordable for us to purchase quality new EVs.