Isuzu Ute pleads for more consultation on federal emissions standard

Isuzu Ute Australia (IUA) has weighed in on the proposed 2025 New Vehicle Efficiency Standard (NVES), calling for more government-industry consultation and warning that some auto brands may be forced to increase prices or exit the Australian market if the federal government’s preferred NVES legislation is implemented.

Civil war has been raging for several weeks between industry organisations, car-makers and climate groups as they debate the finer details of what will be Australia’s first new-vehicle CO2 emissions regulations.

In a statement issued today, IUA urged the government to continue to consult with the industry to avoid any negative impacts for consumers and car-makers alike, citing “timing, financial and engineering challenges for many vehicle brands”.

Presumably they include those that specialise in diesel-powered utes and ute-based off-road SUVs like IUA, which offers only two models – the D-MAX and MU-X – and sold more utes last year than other brand except Toyota and Ford.

“The current NVES proposal doesn’t take into consideration automotive technology development cycles, whereas the comparative US Standards set their targets based on a forecast in alignment with emission technology developments,” said IUA.

“In this respect, we call on the Government to provide vehicle manufacturers with more time to lower the emissions of their model range through realistic product life cycles to avoid negatively impacting Australian consumers.

“The penalties currently proposed by the Government for not meeting emissions targets are also excessive, and many vehicle brands may be forced to increase vehicle pricing to cover penalties incurred.

“Vehicle brands that cannot increase vehicle pricing to cover the penalties may be left with no option but to exit the Australian market, risking a weakening of competition again to the detriment of Australian consumers.”

IUA is in real danger of being one of those brands forced to withdraw from the Australian market according to our sources in Canberra, given it has no immediate plans to introduce hybrid or battery-electric versions of its popular Thai-built D-MAX or MU-X, which will soon join its ute sibling in offering a downsized 1.9-litre turbo-diesel as part of a range-wide MY24 facelift for both models.

Such vehicles are in the pipeline at a global level, but the popular Japanese brand says it will be some time before they’re “affordable and fit for the specific needs of Australians”.

“In further contrast to the US Standards, the current NVES Option B proposal classifies large-SUVs (including 4x4) and passenger cars in the same way, despite often serving very different purposes and fulfilling different needs,” added IUA.

“Vehicles, like a large 4x4 SUV, are built on commercial principles to be fit for purpose, be it carrying loads, towing a trailer, or getting off-road.

“The Government should consider the US approach here and distinguish between passenger vehicles and large-SUVs (especially 4x4).

An electric derivative of the D-MAX is due to launch in Norway sometime next year, however, details of the model are being kept tightly under wraps and the same applies to the previously rumoured MU-X hybrid.

IUA says it’s met directly with government representatives on the matter and is now urging more collaboration between law-makers and industry players in an attempt to secure its future Down Under, where it’s currently the ninth most popular brand despite selling only two models.

Australian market-leader Toyota is another key industry player calling for a delay in the implementation of – or at least alterations to – the NVES.

In the past week the world’s biggest car-maker said it would be forced to pass on any penalties for exceeding CO2 limits directly to consumers through price increases, and decreed that diesel is dead under the Australian government’s current proposal.

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