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Australian approval standards for new vehicles criticised by car brands for being too specific – and making cars harder to launch – will come under a Federal Government review.
Australian motor vehicle regulations – known as Australian Design Rules – will come under government scrutiny after calls from car makers to align them with overseas standards and speed the process of getting new models to market.
Nissan and Mitsubishi have been among the auto brands arguing Australian Design Rules (ADRs) add unnecessary complexity to developing new cars for sale locally, and that they should be harmonised with overseas rules.
It is claimed that aligning ADRs with standards from Europe or other global markets would unlock greater choice of low- or zero-emissions vehicles for Australian consumers, and get new models to market faster.
Now the Federal Government has announced a "review" of ADRs for that purpose, and "the removal of unnecessary barriers."
If the government review goes the way of Nissan and Mitsubishi – and Australia starts accepting new vehicles certified to overseas standards – it could open the gates to new electric cars currently off-limits to local customers.
It comes as the enforcement of emissions standards for new cars is now just seven months away from Australia, which will set CO2 targets car brands must achieve across their line-up to avoid hefty fines.
Australia already derives many of its ADRs from standards set by the United Nations, and are similar to regulations in force in markets such as Europe and Japan.
However, ADRs include a number of Australia-specific regulations – or only accept parts, not all of UN standards – which car makers say adds cost and complexity to the vehicle development process.
Among the most controversial rules is a mandate – with limited exceptions – for every rear seating position in a two-row vehicle to be fitted with a top-tether anchor point for child seats, where many overseas markets only require top tethers on the outboard locations.
This regulation has forced stop-delivery notices and recalls for Tesla and BYD electric cars in the past two years, after the brands launched new vehicles in Australia without a middle-rear top-tether fitted.
"The reality is that we have less choice in Australia because of these unique requirements," Mitsubishi Motors Australia CEO Shaun Westcott told Drive in October.
"It doesn't matter who you are, to modify your vehicle, to adapt it for Australia, that adds cost, adds complexity.
"At the end of the day, and I'm not arguing against ADRs, all I'm saying is let's achieve some form of global harmonisation. It's going to reduce costs, it's going to reduce complexity and it's going to increase choice for Australians.
"And my challenge to anybody is that if it's good enough for Europe or it's good enough for America or if it's good enough for Japan, what's so different about us?"
Mitsubishi has previously claimed it takes 18 to 24 months to approve a vehicle for Australian showrooms.
"This factors in the time taken to obtain international type approvals in the first instance, undertaking development and obtaining compliance information for additional unique Australian ADRs, as well as production and shipping time," a Mitsubishi spokesperson said earlier this year.
Not every brand believes ADRs need to be reviewed, with Mazda telling Drive in August it is "not a huge burden" to develop vehicles for Australia.
The Australian Government says it is interested in "how the adoption of internationally-harmonised ADRs" can reduce prices and increase choice for buyers, as well as promote "productivity and technology innovation in the vehicle and related sectors".
It says the review will not "reconsider the content of individual ADRs," but will reconsider the system as a whole.
Submissions from the public and motor-vehicle industry are now open online until 24 January 2025, with the review to be led by Dr Warren Mundy, "who has extensive experience in transport safety-critical businesses" including airport safety committees.
"Dr Mundy will bring a fresh perspective to regulatory frameworks that have traditionally served not only safety and emissions goals but also protected local manufacturing," CEO of the Motor Trades Association of Australia (MTAA), Matt Hobbs, said in a media statement.
"We commend the Government for committing to an independent review of the ADRs which will contribute to a competitive and safe market for all consumers."
Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family.
