The limits,to apply only to new cars,are designed to encourage manufacturers to sell either more efficient combustion engine cars,or more electric vehicles. Car companies would pay a penalty of $100 for each gram of carbon dioxide per kilometre that their fleet exceeded the caps.
Opposition Leader Peter Dutton and the Federal Chamber of Automotive Industries,which represents major vehicle makers,have criticised the speed and extent of the proposed reforms and have warned of massive price increases for new cars.
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In a submission to the government on Monday,experts at the independent Grattan Institute rejected these claims,citing their analysis showing the average new car price would rise by as little as 1 per cent.
The Melbourne-based think tank also said imported cars that met the new standard would save the average motorist about $1000 in fuel and maintenance over five years.
“The government’s announcement has revived some criticisms that a fuel efficiency standard will ‘end the weekend’ ... it will not,particularly since the targets are in line with those in the US and almost certainly achievable without major negative impacts on consumers,” the Grattan Institute’s Tony Wood,Alison Reeve and Richard Yan said in the submission.
“Lower fuel and maintenance costs mean that consumers will quickly be better off than they otherwise would be – and will be far better off in the long term.”