Only Two-Thirds of Carmakers Hit 2025 Emissions Targets Amid Fuel Efficiency Concerns
Carmakers Miss Emissions Targets as Fuel Efficiency Tests Reveal Gaps

Just two in three regulated car manufacturers successfully achieved their emissions target for 2025, according to recent government reports. This shortfall highlights ongoing challenges in the automotive sector as Australia strives to reduce transport-related emissions.

Real-World Fuel Efficiency Falls Short

Testing conducted by the Australian Automobile Association (AAA) has revealed that three-quarters of new petrol, diesel, and hybrid vehicles in Australia consume more fuel on actual roads than their advertised lab ratings suggest. The AAA's latest assessment, funded by the federal government, involved rigorous on-road protocols around Geelong, Victoria, examining 141 vehicles.

The results showed significant discrepancies. For instance, the GWM Tank 300 used 25% more fuel per 100 kilometers in real-world conditions compared to laboratory tests. Similarly, the Honda HR-V recorded a 19% higher fuel consumption, and the Hyundai Santa Fe used 11% more fuel than indicated in lab settings.

Impact on Emissions Reduction Efforts

Michael Bradley, managing director of the AAA, emphasized that vehicles with higher real-world emissions could undermine the government's initiatives to cut transport emissions. "We need to make sure the emissions reductions aren't just happening in a laboratory," he stated. Under the Albanese government's new vehicle efficiency standard (NVES), carmakers are mandated to test emissions for each vehicle sold and face penalties if they exceed limits across their annual sales.

Last week, it was reported that only two-thirds of regulated vehicle suppliers met their 2025 emissions targets. Companies such as Mazda, Nissan, and Subaru, which failed to achieve these goals, now confront potential fines of up to $25 million. Bradley noted that the AAA's independent testing could help verify whether real-world emissions reductions align with NVES and laboratory claims.

Electric Vehicle Range Discrepancies

The AAA has also extended its testing to battery electric vehicles (EVs), none of which have delivered their promised range. In the latest report, two additional EVs were found to fall short. The BMW iX1 electric SUV achieved only 360 kilometers on a full battery, compared to its advertised range of 400 kilometers, marking a 10% gap. The BYD Seal, with an advertised range of 650 kilometers, managed just 488 kilometers in real-world conditions, a 25% shortfall. Previous tests on the BYD Atto 3 revealed a 23% gap between lab-tested and real-world range.

Australia has been slower in adopting EVs compared to other nations, with EVs accounting for 12% of new sales in the latter half of last year. Bradley suggested that this testing could alleviate buyer concerns about range anxiety and infrastructure. "They really need to know what the exact range of a new car is," he explained, addressing worries over regional network black spots and access to fast chargers.

Expert Insights and Consumer Implications

Professor Dongke Zhang, an energy expert at the University of Western Australia, pointed out that motorists often use more petrol than manufacturers advertise, making direct comparisons between lab and real-world tests challenging. However, Bradley countered that the AAA's program found no consistent pattern behind these performance gaps, with some models even proving more fuel-efficient on roads than in labs. "There's no rule of thumb here for consumers, there's no fudge factor they can bake into consumer decisions," he remarked.

This situation underscores broader issues in automotive regulation and consumer trust. As Australia continues to grapple with reducing transport emissions, the gap between laboratory promises and real-world performance remains a critical hurdle for policymakers, manufacturers, and buyers alike.