What is a low-volume import?

Low-volume imports and grey imports are not necessarily one and the same.

It’s true, in general, that grey imports have been shipped here in low volumes under the auspice of SEVS (Specialist and Enthusiast Vehicles Scheme), but a low-volume import may not be a ‘grey’ import – a vehicle that is imported by a person or company unaffiliated with its manufacturer.

To illustrate, in June 2001 Mitsubishi Australia introduced the ‘Tommi Makinen’ edition Lancer Ralliart Evolution VI to Australia at what was a whopping price at the time, $79,990.

Just 100 units of the high-performance rally-winning road car were imported, in accordance with then current low-import regulations. The car was a low-volume import, but not a grey import, since it was imported via Mitsubishi’s official distribution channel.

These regulations didn’t demand the same level of Australian Design Rule (ADR) compliance as more mundane Lancer models. There was no need for crash testing of the Evo, despite a different powertrain and (lightly) revised body.

And without that extra cost of ADR homologation, the business case to bring the cars here tripped over the line in favour of the ‘yes’ argument. Being imported by the factory’s official distribution channel, this particular car wasn’t just a grey import.

The Subaru WRX STi 22B was another car brought in by the official distributor (Inchcape) in very low numbers – just five units for the entire country. It was not a grey import either.

So it’s not unprecedented for a factory-appointed distribution channel to import vehicles in very low numbers.

In the main, however, low-volume imports (let’s call them LVIs hereon) are brought to market as grey imports, acquired by individuals or privately-owned businesses with no contractual arrangement in place with the original equipment manufacturer (‘the factory’) to supply the local market.

LVIs can be brand-new vehicles – such as the upcoming Chevrolet Corvette, which is built as a right-hand drive model in GM’s Bowling Green Kentucky factory. The lightweight sports car certainly meets one of the criteria for low-volume importation: performance.

With changes to SEVS and last month’s implementation of the Road Vehicle Standards Act 2018 (RVS), performance is one of six criteria for judging whether a car can be imported as an LVI (see below).

The basis for determining whether the vehicle is a performance car is a power-to-weight ratio of 110kW/tonne for a vehicle built in 1992. The performance criterion sits on a sliding scale, rising by 1kW increments for each ‘build’ year from 1992.

In 2021, a performance car must deliver at least 139kW/tonne. With 369kW on tap, the Corvette faces no problem meeting that standard, even if it were to weigh over two tonnes.

SEVS is an umbrella scheme for LVS, the Low Volume Scheme for new vehicles. This allows for a company to supply up to 25 or up to 100 vehicles a year. A company wanting to import and distribute a super-low volume brand like British sports car manufacturer Morgan would rely on this scheme.

An LVI can also be a used car of course, possibly a left-hand drive model that is converted by a local firm without any business links to the factory whatsoever. Vehicles like these are your actual grey imports, and they’re shipped into the country through RAWS (Registered Automotive Workshop Scheme).

If the vehicle is 30 years or older (or just 25 years in Victoria) it can be legally driven on Australian roads without conversion to right-hand drive. That explains all those LHD ’66 Mustangs you see driving around at weekends.

Eligibility for vehicles to be imported through SEVS has changed in recent times, and during an interim period between December 10, 2019 and July 1, 2021, vehicles were evaluated for SEVS in accordance with the terms of both the Motor Vehicle Standards Act 1989 (MVS) and the RVS, which succeeds it. After July 1, applications for low-volume vehicle importation eligibility are decided by the RVS alone.

The change from MVS to RVS has severely curtailed the scope for importation of LVIs into Australia. No longer are buyers offered popular SUVs and people-movers, or quirky hatchbacks, although many thousands of these cars brought in during the MVS period are trundling around on Australian roads.

Many previously popular vehicles, such as the Toyota HiLux Surf or the Nissan Elgrand were previously sold here on the basis that they filled a gap that the factory had left unoccupied in the market. The HiLux Surf, for example, was a Toyota 4Runner, but with a diesel engine at a time when the 4Runner was petrol-only.

Vehicles like these are now excluded because they’re not eligible for SEVS, applying the new criteria. They’re imported from a right-hand drive market (Japan), so they’re not ‘left-hand drive’.

Neither do they offer specific performance or environmental performance advantages. Mobility? That’s a ‘no’ also. Ditto for rarity, and they’re not campervans or motorhomes either.

The left-hand drive criterion for SEVS (see below) allows 1.5-tonne and heavier commercial vehicles from North America to be imported here and converted to right-hand drive. They can be brand-new or used, but new cars imported through an unofficial sales channel are subject to the low-volume limits stipulated by LVS.

Queensland-based companies like Harrison F-Trucks, Performax International and SCD are three examples of companies importing and converting left-hand drive American pick-up trucks for the local market.

Performax is not only in direct competition with Harrison, both of which sell Ford F-Series models, but also with GM Specialty Vehicles (GMSV) since both companies convert and sell the Chevrolet Silverado in Australia.

The Silverado sold through GMSV’s dealer network is converted to right-hand drive by the Walkinshaw Automotive Group in that company’s Clayton, Victoria facility.

Formerly a partner with Ateco in American Special Vehicles, Walkinshaw honed its art building hot Holdens under the banner of Holden Special Vehicles from the late 1980s through to the withdrawal of the Holden brand in 2020.

GMSV is the official representative for General Motors in Australia, so the Silverado converted by Walkinshaw and sold through GMSV’s local dealer network is the real deal.

It’s covered by a full warranty backed by the factory and sales are not limited to low volumes, because SEVS doesn’t apply to new vehicles sold through an official distributor any more than it would apply to the Toyota Corolla or Ford Ranger.

Another company selling this type of American truck is RAM Trucks Australia, an Ateco Automotive brand that competes with independent RAM converter SCD.

RAM Trucks Australia is the official importer or RAM models locally and contracts the right-hand drive conversion of RAM trucks to the Walkinshaw Automotive Group, so Walkinshaw is currently very busy converting both Chevy Silverado and RAM models for two different customers.

In both cases, Walkinshaw’s converted models are supported by the factory and are not limited in sales volumes, because SEVS doesn’t apply to factory-appointed distributors (GMSV and RAM Trucks Australia).

These products are not LVIs as such. They are full-volume (ADR) complianced and covered by a factory-backed warranty, leaving no doubt they will protect you properly in the event of a crash, or a warranty defect or recall.

Performance
 – a new graduated threshold formula from 110 kilowatts per Tonne (kW/T) in 1992, increasing by 1 kW/T each year after

Environmental Performance
 – an objective vehicle technology based on an alternate power source to internal combustion or a micro-car subcategory for low power (low emissions) vehicles

Mobility
 – originally manufactured or fitted from the factory with substantive specialist mobility features to assist people with disabilities

Rarity
 – total worldwide production of the vehicle ‘Make' is less than 3000 units per year;
 – total worldwide production of the vehicle ‘Model' is less than 1000 units per year;
 – total worldwide production of the vehicle ‘Variant' is less than 100 vehicles per year.
Left-hand drive vehicles imported under the rarity criterion will not require conversion to right-hand drive but will need state or territory agreement for use on their roads

Left-hand drive
 – originally manufactured as a left-hand drive vehicle and not available as an originally manufactured right hand drive vehicle in another world market. These vehicles will require conversion to right hand drive for safety reasons.

Campervans and Motorhomes
 – originally manufactured as a campervan or motorhome

Related: RAM 1500 v Chevrolet Silverado 1500 2021 Comparison
Related: FCAI praises government for grey import stance
Related: ACCC restates support for parallel imports
Related: How to import a used vehicle
Related: Performax Chevy Silverado here in August
Related: GMSV launches with 54-dealer retail network