Australia's stricter emissions rules to raise hybrid car prices

Summarised from 2 outlets · Updated 2 Nov, 07:33 · Archive

Australia's New Vehicle Efficiency Scheme will impose tougher CO2 limits from January 2027, affecting over 50 hybrid vehicles and potentially raising their prices.

Australia's New Vehicle Efficiency Scheme will impose stricter CO2 emissions targets from January 2027. The headline limits will fall from 117g/km to 92g/km for Type 1 vehicles (passenger cars and many SUVs), and from 180g/km to 150g/km for Type 2 vehicles (light commercial vehicles and heavy off-road passenger vehicles), though individual vehicles receive mass-adjusted targets.

The tighter rules will affect more than 50 petrol-electric hybrid vehicles currently on sale. Analysis shows that 32 additional hybrid variants will exceed CO2 targets in 2027, bringing the total to 51 vehicles penalised under the new scheme.

Hyundai Australia's Scott Nargar said the change could have negative implications. He argued that hybrids deserve encouragement for people who cannot afford electric vehicles or lack charging infrastructure. 'So now we start to penalise vehicles that we want to encourage people that can't afford to get into an EV – or can't charge one or can't tow with one – to get into something that is doing a good job towards decarbonisation, lowering fuel usage, and also delivering a safety outcome,' he told CarExpert.

The stricter scheme may push consumers to pay higher hybrid prices or keep older, higher-emission vehicles rather than upgrading.

Australia's stricter emissions rules to raise hybrid car prices — Image: Perth Now

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How it is being reported

Hybrid vehicle prices to go up under changing NVES rules, says HyundaiAustralians could soon be paying more for hybrids – or holding onto their older, higher-emission cars – due to NVES thresholds coming into effect in 2027.Perth Now · 2 Nov, 07:02
Hybrid vehicle prices to go up under changing NVES rules, says HyundaiAustralians could soon be paying more for hybrids – or holding onto their older, higher-emission cars – due to NVES thresholds coming into effect in 2027.The West Australian · 2 Nov, 07:02

In this story: Hyundai Australia · Australia · Scott Nargar

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