Almost 20 auto brands missed CO2 targets in Australian Government's first NVES results

The Australian Government has released the first results under its New Vehicle Efficiency Standard (NVES), and around two-thirds of brands beat their emissions targets.

It has confirmed the average emissions for new light passenger vehicles beat the NVES target by 21 per cent.

Type 1 vehicles (passenger cars and SUVs) had a headline limit of 141g/km of carbon dioxide (CO2) emissions for 2025, with Type 2 vehicles – including utes, vans, and large off-road SUVs like the Ford Everest – having a headline limit of 210g/km.

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Overall, Type 1 vehicles had average emissions of 114g/km, while Type 2 vehicles had average emissions of 199g/km.

Headline CO2 limits for Type 1 and Type 2 vehicles will shrink each year until 2029, so car brands that met their target in 2025 mightn’t be so lucky in 2026 unless they continue to introduce low- or zero-emissions vehicles to offset their other vehicles.

A total of 40 ‘regulated entities’ – car manufacturers, suppliers or importers – beat their 2025 CO2 target, and 19 didn’t.

The latter includes Alfa Romeo, Aston Martin, Ferrari, General Motors, Honda, Hyundai, KGM, JLR, Mahindra, Maserati, Mazda, Nissan, Porsche, Rolls-Royce, SAIC Maxus (better known as LDV), and Subaru.

Also included in this list of brands that didn’t meet their CO2 target is FCA USA LLC, one of four separate entries for automotive giant Stellantis, with the others being Stellantis Australia and New Zealand Pty Ltd, Stellantis Europe S.P.A., and Stellantis Auto SAS.

Confusingly, Stellantis is one of several automakers that have their results split across multiple registered entities.

The government has published a list of regulated entities, along with their number of covered vehicles, their interim emissions value, units accrued and liabilities accrued. Effectively, if a brand has an interim emissions value above 0, this means it may be subject to penalties as it has exceeded its target.

Mazda had 38,465 vehicles recorded on the Register of Approved Vehicles (RAV), and accrued 508,517 liabilities – the highest of any company, and more than twice as many as second-placed Nissan (215,261).

At the other end of the spectrum, BYD Auto Co Ltd had 26,129 vehicles covered and an interim emissions value of -4,234,294, followed by Toyota (115,504 vehicles, -2,890,625), Tesla (13,907 vehicles, -2,212,093) and BYD Auto Industry Company Limited (13,474 vehicles, -2,048,530).

The government says there’s now a net surplus of 15.9 million NVES units, which means there’s now a market for trading NVES credits. Under the scheme, a brand that isn’t meeting its targets can choose to buy credits from another brand that is.

This is handy, for example, for brands with high-emitting vehicles that want to avoid penalties, and for brands with low- or zero-emissions vehicles that want to make a tidy profit. Brands that beat their target can also use these credits to offset their liabilities in future years as targets get tighter.

A total of 620,947 vehicles were entered on the RAV, with 71 per cent of these being Type 1 vehicles and 29 per cent being Type 2 vehicles.

The NVES covers all new passenger and light commercial vehicles with a gross vehicle mass of up to 4.5 tonnes.

This is the first set of NVES results, and it’ll be the only reporting period that doesn’t cover a full calendar year. That’s because the penalty component of the NVES only came into effect on July 1, 2025, despite the NVES officially commencing on January 1, 2025.

Companies have two years to address their balance – if it’s over zero – by “extinguishing” units against their interim emissions value. If they don’t, they’ll end up with a final emissions value over zero, which in turn means they may be issued with an infringement notice and in turn incur a penalty.

For brands that had an interim emissions value above zero in 2025, this means they’ll need to trade units with another company by December 31, 2027 or risk a penalty in February 2028 of $50 multiplied by their final emissions value.

“These first NVES results show that cleaner vehicles and a competitive market can go hand in hand,” said Catherine King, the federal minister for Infrastructure, Transport, Regional Development and Local Government.

“Australians continue to have a choice across a wide variety of vehicles.

“These results make it clear the NVES supports both lower emissions and consumer affordability.”

Below, we’ve included the table from the NVES regulator website. Company names are left untouched, except for the removal of errant capitalisation.

Companies submit their vehicles’ CO2 emissions and mass in running order – the weight of the vehicle including all fluids, standard equipment, and a 75kg driver – onto the RAV before they provide an approved road vehicle to the Australian market for the first time.

The Federal Chamber of Automotive Industries (FCAI), the peak body for car brands in Australia, said in a statement there has been an increase in low- and zero-emissions vehicles in Australia but sales growth has only increased marginally.

It argues maintaining compliance amid tightening targets would require “materially stronger uptake of EVs than current market trends indicate”.

"This is a major concern because an increase in EVs on Australian roads is critical to the achievement of the stringent Government targets which reduce each year to 2029,” said FCAI chief executive Tony Weber in a statement.

“The increase in the supply of zero and low emissions vehicles currently being undertaken by car makers is the best action they can take to meet the NVES targets. However, the key to long-term success of the NVES relies on increased demand for EVs. At the moment, demand for EVs remains subdued and this is a major concern and disappointment for car makers.

“FCAI is keen to see the Government consider policy settings that support consumer demand for EVs and low-emission vehicles which will assist the achievement of the NVES.”

Polestar Australia managing director Scott Maynard, whose brand only sells EVs, agreed the NVES results has driven an increase in the number of low- and zero-emissions vehicles in Australia but warned against pushback from legacy brands.

"The fact two-thirds of manufacturers beat their emissions targets prove these regulations are achievable, despite claims to the contrary from some corners of the Australian car industry," said Mr Maynard in a statement.

"As consultation regarding the next phase of NVES begins, it remains crucial that Australians don't give in to scaremongering from legacy brands determined to maintain our nation's status as a convenient dumping ground for old technology.

"The next emissions reduction targets laid out by NVES, combined with incentives such as the FBT exemption for electric vehicles, remain crucial as we progress towards Australia's long-term emissions reduction targets."

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