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NEWS
FCAI responds to 'Aussie tax' criticism
Peak automotive body and global industry analyst tackle market perception that cars cost too muchA study conducted by IHS Automotive on behalf of the Federal Chamber of Automotive Industries (FCAI) has revealed that the pricing of new cars in Australia compares favourably with prices for equivalent models in Britain.
It's a good news story for the FCAI and its constituent members – the car companies that build here or import cars from overseas. In a press release issued last week, the FCAI noted that Australia is a highly competitive market, with 67 brands and over 350 models fighting it out for increased market share.
IHS Automotive (formerly RL Polk) compared pricing and specification for imported vehicles sold here and in the other two right-hand drive markets.
"Using IHS Automotive's market comparison report, the FCAI undertook further analysis to compare 'like for like' models, in terms of specifications," FCAI Chief Executive Tony Weber was quoted saying in the press release issued earlier this week.
"Together, our research shows that for the vast majority of the Australian new car market, a model of like specifications is cheaper in Australia than it is in the United Kingdom or New Zealand."
According to Weber, cars sold by factory-appointed distributors are often specially tuned to handle the local environment, can be serviced by a wider network of dealers, and feature the comprehensive range of equipment that is important to Aussie consumers. The study compares standard specifications and the basic prices before imposition of on-road costs in each market. For the sake of consistency IHS converted UK prices from GBP to AUD on the strength of an exchange rate of £0.55 – the average exchange rate applicable during the first half of 2014.
Some of the cars in the study were more expensive here than in Britain, but there was either little between the two prices, or the Australian price was inflated markedly by the inclusion of the Luxury Car Tax for vehicles priced above $61,884.
Examples taken from the study are listed below:
| Model | Aust. | UK |
| Ford Focus Trend | $22,290 | $32,325 |
| Mazda 3 Neo | $23,792 | $31,405 |
| Toyota Corolla Ascent Sport | $23,540 | $24,250 |
| Audi A4 2.0 TFSI quattro S tronic Ambition | $59,900 | $63,427 |
| Audi A3 Sportback 1.4 TFSI S tronic (92kW) | $35,600 | $37,641 |
| Audi Q5 2.0 TDI quattro S tronic (130kW) | $62,600 | $63,645 |
| BMW 3 series 328i | $69,400 | $68,808 |
| Mercedes-Benz C-class | $60,900 | $56,659 |
| Mercedes-Benz A180 | $35,600 | 42,417 |
| Mercedes-Benz A45 AMG | $74,900 | $87,156 |
| Mercedes-Benz ML350 BlueTec Diesel | $102,236 | $100,410 |
| Land Rover Freelander 2 TD4 SE | $54,100 | $55,832 |
| Range Rover Evoque eD4 Pure | $49,995 | $46,795 |
| Range Rover Sport SDV6 HSE | $126,229 | $103,486 |
Prices listed for the ML 350 BlueTEC and Range Rover Sport SDV6 include the Luxury Car Tax component not applicable in Britain.
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