Regan Brown
New fuel efficiency standards will only apply to new vehicles and not to existing cars. Manufacturers will be able to keep selling a mix of cars, vans and utes just like they do today. There is no evidence to suggest that the standard will increase vehicle prices. In jurisdictions that have had a standard in place for some time (around 50 years in the case of the US and Canada), real-world evidence has not shown an increase in price for consumers in the cost of cars.
| Characteristics | Values |
|---|---|
| Australia's New Vehicle Efficiency Standard (NVES) will only apply to new vehicles | No changes to existing cars |
| NVES will not increase vehicle prices | Minimal increase of up to $500 (1%) |
| NVES will not stop the sale of 4WDs and utes | Manufacturers can continue to sell a mix of cars, vans and utes |
| NVES will not require drivers to take any action | No need to modify existing cars |
| NVES will save consumers money | Fuel savings over the vehicle's lifetime |
| NVES will increase the choice of new, efficient vehicles | Greater choice of modern and efficient vehicles |
| NVES will help Australia achieve net zero emissions by 2050 | Reduced fuel use and emissions |
What You'll Learn
New standards will only apply to new vehicles
The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips.
The new Corporate Average Fuel Economy standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026, the strongest cost savings and fuel efficiency standards to date.
The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The New Vehicle Efficiency Standard will help to improve the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
The Standard will only apply to new vehicles sold in Australia and drivers will not have to take any action. Over time, vehicles with fuel-efficient and other more modern technology will also enter the second-hand market, improving the efficiency of Australian vehicles overall.
No, the Standard will not increase vehicle prices. In jurisdictions that have had a standard in place for some time (around 50 years in the case of the US and Canada), real-world evidence has not shown an increase in price for consumers in the cost of cars.
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Manufacturers will be able to keep selling a mix of cars
New fuel efficiency standards will not require new car purchases. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips.
New fuel efficiency standards will not require new car purchases in Australia. The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The New Vehicle Efficiency Standard will help improve the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
New fuel efficiency standards will not require new car purchases in Australia. The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The New Vehicle Efficiency Standard will help improve the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
New fuel efficiency standards will not require new car purchases in Australia. The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The New Vehicle Efficiency Standard will help improve the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
New fuel efficiency standards will not require new car purchases in Australia. The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The New Vehicle Efficiency Standard will help improve the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
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There is no evidence of increased vehicle prices
There is no evidence to suggest that new fuel efficiency standards will increase vehicle prices. In Australia, the New Vehicle Efficiency Standard will only apply to new vehicles and drivers will not have to take any action. The Standard will mean greater choice of more modern and efficient vehicles when you do go to buy a new car.
In the US, the new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips.
In China, the share of new energy vehicles has increased sharply, making the new energy vehicle a competitive alternative when people intend to change their travel mode, especially during the record-high gasoline prices. Wang et al. (2022) assessed the connection between oil prices and vehicle sales in each subsector of the automobile market. Du and Lin (2017) analyzed how the rising oil prices impacted the vehicle purchase intention of different income groups when 95 gasoline was about 6 CNY per liter. The above studies imaged a high oil prices scenario to investigate consumers' vehicle purchase intention, which may not represent the authentic intention changes under the record-high gasoline prices.
In 2025, more drivers are paying over $80,000 for a new car or truck than ever before. Oddly enough, luxury car prices haven’t climbed quite as much over the past half-decade. While mainstream car brands saw prices climb 27%, luxury brands increased by 25% from Q4 2019 to Q4 2024.
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Increased vehicle efficiency will save money
New fuel efficiency standards will save consumers money at the pump and reduce transportation emissions. Average new car buyers in regional and remote areas travel longer distances and will have fuel savings up to 20% higher than buyers in major cities. Americans purchasing new vehicles in 2026 will get 33% more miles per gallon as compared to 2021 vehicles. This means new car drivers in 2026 will only have to fill up their tanks three times as compared to every four times that new car drivers today do for the same trips.
The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump. The new Corporate Average Fuel Economy standards require an industry-wide fleet average of approximately 49 mpg for passenger cars and light trucks in model year 2026, the strongest cost savings and fuel efficiency standards to date.
The Standard will only apply to new vehicles. You will not have to modify or change your existing car. Over time, vehicles with fuel-efficient and other more modern technology will also enter the second-hand market, improving the efficiency of Australian vehicles overall. The Standard will mean greater choice of more modern and efficient vehicles when you do go to buy a new car. There is no evidence to suggest that the Standard will increase vehicle prices. In jurisdictions that have had a standard in place for some time (around 50 years in the case of the US and Canada), real-world evidence has not shown an increase in price for consumers in the cost of cars.
The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The introduction of the Standard keeps Australia on track to achieve net zero emissions by 2050.
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New standards will bring cleaner cars to Australia
The New Vehicle Efficiency Standard will save you money at the fuel bowser, bring cleaner cars to Australia and give you more choice of new, efficient vehicles. The Standard will apply to new cars sold in the Australian market. The introduction of the Standard keeps Australia on track to achieve net zero emissions by 2050.
The Standard will only apply to new vehicles and no modifications will be required for existing cars. Over time, vehicles with fuel-efficient and other more modern technology will also enter the second-hand market, improving the efficiency of Australian vehicles overall.
Average new car buyers in regional and remote areas travel longer distances and will have fuel savings up to 20% higher than buyers in major cities. The Standard is about improving the fuel efficiency of all new cars, whether they are petrol, diesel, electric or hybrids.
There is no evidence to suggest that the Standard will increase vehicle prices. In jurisdictions that have had a standard in place for some time (around 50 years in the case of the US and Canada), real-world evidence has not shown an increase in price for consumers in the cost of cars.
The Standard will mean greater choice of more modern and efficient vehicles when you do go to buy a new car. The new CAFE standards for model year 2024-26 will reduce fuel use by more than 200 billion gallons through 2050, as compared to continuing under the old standards. Increasing vehicle efficiency and reducing fuel use will save American families and consumers money at the pump.
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Frequently asked questions
No. The new vehicle efficiency standard will only apply to new vehicles and not to existing cars.
No. There is no evidence to suggest that the new vehicle efficiency standard will increase vehicle prices.
No. The new vehicle efficiency standard will not require drivers to take any action.
Minimal. The Grattan Institute found that there would be a minimal increase to the average cost of new cars in Australia under the new vehicle efficiency standard.
