According to Reuters, Tesla announced on March 7th that it will withdraw from Australia's major automotive lobbying group and resign from its board position. Tesla accused the group of misleading consumers regarding government proposals on fuel efficiency standards and their potential impact on car prices.
In a letter to the Federal Chamber of Automotive Industries (FCAI) in Australia, Tesla stated that the chamber "has repeatedly made plainly incorrect assertions." The letter further stated, "Tesla is also concerned that it is inappropriate for the FCAI to forecast or coordinate how competitor brands would respond to environmental regulations causing price increases."
Tesla has requested that the Australian competition regulator investigate the comments made by the FCAI. Members of the FCAI chamber, including executives of major automotive brands, did not immediately respond to requests for comment. Tesla revealed that it will terminate its membership in June.
As of now, Australia is the only developed country besides Russia that has not implemented fuel efficiency standards. The center-left Labor government in Australia, which came into power in 2022, plans to introduce a fuel efficiency standard aimed at limiting the average carbon emissions of new vehicles starting next year.
This may prompt car manufacturers to export more electric vehicles to Australia, further driving the adoption of electric cars and aligning the country with standards adopted by most other developed economies.
The FCAI chamber stated on March 6th that the Australian government has chosen to implement a fuel efficiency standard from January 1, 2025, with "extremely ambitious goals and harsh penalties, which will take effect in a very short period of time."
The FCAI stated that the implementation of the new standard could cause significant disruption across much of the industry and result in reduced consumer choice and increased car prices. Currently, the Australian government has concluded consultations on preferred fuel efficiency models and plans to legislate later this year.
