Volkswagen Australia exits auto industry policy committee after Tesla's departure

Volkswagen follows Tesla: Volkswagen Australia has announced its withdrawal from the Federal Chamber of Automotive Industries' policymaking committee, following Tesla's recent departure from the group. This decision comes amidst a growing disagreement over proposed fuel standards, with Volkswagen distancing itself from the lobby group's opposition to the new regulations.

Emphasis on NVES

In a communication addressed to fellow chamber members, Volkswagen clarified its independent stance on public and policy matters, particularly stressing its support for robust New Vehicle Efficiency Standards (NVES) in Australia.

The rift widened after Tesla accused the chamber of disseminating misinformation and subsequently exited the group, a move later echoed by Polestar.

Australia's recent proposal for vehicle efficiency standards aims to bolster the adoption of electric vehicles and reduce emissions. Notably, Russia and Australia remain amongst the few industrialised nations lacking such regulations.

Policy price concerns

The automotive lobby contends that the government's proposed standards would inflate prices and limit vehicle options, particularly affecting popular pick-up trucks in the Australian market. Toyota, a prominent player in pick-up truck sales, has sided with the lobby group's stance, urging the government to reconsider its approach.

Energy Minister Chris Bowen suggested openness to negotiation, indicating a willingness to consider reasonable alternatives proposed by stakeholders.

(With Reuters Inputs)