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Australian Automotive Industry Update

Melbourne Motor Show Sells Out as Australian Motorists Flock to See Latest Models

The Melbourne Motor Show has made a triumphant return to the Melbourne Convention & Exhibition Centre after a 15-year hiatus, with tickets for the Saturday session selling out well in advance. Opened by the Minister for Creative Industries, Colin Brooks, the event showcased more than 25 new vehicle launches from brands spanning the automotive spectrum.

Established manufacturers and newcomers alike displayed their latest offerings, including Brabus, BYD, Deepal, Farizon, Foton, Geely, GWM, Isuzu Ute, JAC, Kia, Leapmotor, Mahindra, McLaren, MG Motor, Peugeot, Porsche, Smart, Subaru, Tesla, Xpeng, and Zeekr.

The mainstream entrants were accompanied by hypercars including the Ferrari LaFerrari and Porsche 918, a Red Bull Formula 1 car, Australian Defence Force and Victoria Emergency Services vehicles, test drives and hands-on experiences, motorsport demonstrations, and rugged off-road and adventure builds.

The sell-out success signals strong consumer interest in experiencing automotive innovations firsthand, even as digital car shopping continues to gain traction.

Coalition Pledges to Scrap New Vehicle Efficiency Standard Penalties

In a significant policy announcement, Peter Dutton has stated that if elected, the Coalition will scrap penalties under Labor's New Vehicle Efficiency Standard (NVES). Dutton argues that the so-called "car and ute tax" would drive up prices on popular internal combustion engine vehicles like the Toyota RAV4 and Ford Ranger.

The Coalition's alternative approach would retain efficiency standards without financial penalties, aiming to encourage greener imports without raising vehicle prices. However, this position has drawn criticism from electric vehicle manufacturers including Tesla and Polestar, who argue it would undermine the transition to low emission vehicles by removing incentives for car makers to produce cleaner cars.

Industry stakeholders are closely watching these developments as the Australian government's NVES is set to come into effect in July this year.

Carmakers Signal Price Increases as NVES Implementation Approaches

As the implementation date for Australia's NVES approaches, several popular car brands have indicated potential market adjustments. Isuzu, Mazda, and GWM have signaled that price hikes may be necessary due to fines they expect to incur, with some models potentially being withdrawn from the Australian market altogether.

While these brands have expressed concern about the impact of the new standards, manufacturers like Ford remain committed to offering internal combustion engine vehicles. Ford cites customer preferences as the driving force behind their product decisions while they navigate the balance between consumer needs and regulatory compliance.

Global Tariff Tensions Impact Vehicle Shipments

In international news affecting the Australian market, carmakers are holding back thousands of vehicles at U.S. ports and suspending shipments amid uncertainty over President Trump's new 25% tariffs on imported cars and parts.

With some ports approaching capacity, manufacturers including Aston Martin and Jaguar Land Rover have adopted a "temporary wait-and-see approach" by pausing vehicle shipments and relying on existing U.S. inventory while assessing the potential duration of tariffs and possible retaliatory measures by other countries.

Similar strategies are being implemented by Audi and Volkswagen, who have delayed shipments while finalizing their pricing strategies. These brands are offering increased transparency to dealers and customers by including an itemized 'Added Import Fee' on vehicle window stickers to clearly communicate the impact of tariffs on new vehicle prices.

The situation highlights the continuing complexity of global automotive supply chains and the impact of international trade policies on vehicle availability and pricing.

Skoda Australia Celebrates Dealership Excellence

Skoda Australia recently hosted its 2025 Dealer of the Year awards, celebrating outstanding performance across sales, service, and financial services. The event recognized the invaluable contribution of the dealership network to the brand's success in the Australian market.

Bayside Skoda in Victoria emerged as the standout performer, taking home three awards including the coveted National Dealer of the Year recognition. The awards underscore the importance of dealership excellence in building brand presence and ensuring customer satisfaction in a competitive market.

MTAA Announces Leadership Changes and Restructuring

The Motor Trades Association of Australia (MTAA) has announced a restructuring of its operations aimed at strengthening its policy influence and outcomes. CEO Matt Hobbs will be stepping down by mutual agreement, with the organization acknowledging his leadership on key reforms, including the NVES.

MTA Queensland CEO Rod Camm has been appointed as interim chief executive to maintain continuity and stability during this transition period. The restructuring reflects the association's commitment to effectively representing the interests of the motor trades industry during a period of significant regulatory and market changes.

Conclusion

The Australian automotive landscape continues to evolve rapidly, with regulatory changes, international trade tensions, and shifting consumer preferences all influencing market dynamics. Dealerships face both challenges and opportunities as they navigate these changes, with success increasingly dependent on adaptability, customer-centricity, and operational excellence.

The Southern Cross Dealership Report will continue to monitor these developments and provide timely, relevant insights for industry professionals.

Reposted from the Southern Cross Dealership Report substack with permission.

Southern Cross Dealership Report - Episode 4