Toyota to Tesla, car makers welcome softer new vehicle efficiency standards

The government is planning to introduce legislation for the new standards on Wednesday in a bid to reduce fuel costs and emissions from new passenger vehicles by more than 60 per cent by 2030. It is modelled that emissions of new light commercial vehicles would roughly halve over the same period.

It is a measure that the Coalition tried to introduce in government, but it is now campaigning vigorously against while flagging an alternative policy before the next election. The Greens and crossbenchers such as ACT senator David Pocock are alternatively critical of any attempt to water down the standards.

Amendments have come after consultations with the car industry, with Energy Minister Chris Bowen calling the changes "sensible, but long overdue".

"Not everybody here has got everything they've asked for. Some people wanted us to go harder, faster. Some had concerns and wanted us to slow," he told reporters.

The main change is that a "limited" number of 4WDs, including the Toyota Landcruiser and Nissan Patrol, will be reclassified from passenger cars to light commercial vehicles so they will have less stringent CO2 limits.

The standard remains that it requires car companies to meet a per kilometre emissions target averaged across a carmaker's vehicle fleet sold in a new year. To meet the target, carmakers would need to offer enough fuel-efficient models to offset more-polluting vehicles.

Under the adjusted plan, the government will provide $60 million for EV charging infrastructure at Australian car dealerships.

Tesla's Sam McLean said the compromise is a "very moderate standard that takes Australia from being really the last place in this transition to the middle of the pack", while Toyota's president and CEO, who was previously opposed, was now backing the amended scheme as a "positive step forward".

"We shouldn't be under any illusions that there still remains a very big challenge in achieving those ambitious numbers ... but the reality is we just simply need to get on with it now," Mr Callachor said.

But asked if the standard was a "ute tax", the Toyota boss said, "No, the actual policy is directed at reducing carbon emissions in the economy."

Opposition Leader Peter Dutton told the joint party room on Tuesday that any version of the new standard was a "disastrous new tax" that is "still going to push up the cost of many car models".

He said the Coalition was in favour of emissions reductions, but any new exemption was a sign that the policy was "too rushed and badly designed" and standards should not be introduced "at the expense of those who can't afford it or have no choice in the cars that they buy".

The Canberra Times sought comment from the Opposition's spokesperson for energy and climate change Ted O'Brien.

Opposition frontbencher Barnaby Joyce asked the government about the price of Toyota models under the new standards, proposing that the Landcruiser would be made "$10,000 more expensive than it is today". But Mr Bowen pointed to Toyota's fresh support for the standard.

"I'm not sure who he thinks makes the HiLux, Lamborghini maybe?" he told Parliament.

Before the detail was announced, Senator Pocock said Australia should not be watering down vehicle efficiency standards.

"We should be offering Australians world-class fuel efficiency standards, providing more choice and ultimately saving Australians a lot of money," he told The Canberra Times.

If passed, the new vehicle efficiency standard would bring Australia in line with 80 per cent of the global car market, including the US, the UK, European Union nations, and China. Russia is the only major economy without such clean car standards.