Australia's new vehicle emissions legislation has claimed its first victims: the entry-level 4x2 versions of the popular Ford Everest and Isuzu MU-X. The New Vehicle Efficiency Standard (NVES), designed to incentivize the sale of low-emissions vehicles and penalize high-emitting ones, will lead to the discontinuation of these more affordable variants.
NVES Penalties Force Discontinuation
The NVES, which took effect on January 1, 2025, imposes penalties on carmakers who exceed an average carbon emissions target on their sold vehicles each year. These penalties are calculated at $100 per g/km of CO2 over the target for each vehicle. For 2025, the CO2 limit is 141g/km for passenger cars (Type 1) and 210g/km for light commercial vehicles and heavy-duty SUVs (Type 2). These limits will decrease significantly by 2029.
Because the 4x2 versions of both the Everest and MU-X are classified as MA (Type 1) vehicles due to their lack of four-wheel drive, they will be axed to avoid these penalties.
Ford Everest 4x2 Models Depart
Ford Australia confirmed that the Everest 4x2 variants (Ambiente and Sport) will be discontinued from the end of May production. A Ford Australia spokesperson stated that the more stringent restrictions and higher penalties imposed on Type 1 vehicles made the decision necessary for commercial reasons.
While acknowledging the disappointment for customers, the spokesperson emphasized the company's commitment to its four-wheel-drive lineup, which has been extremely popular.
The move will allow Ford to focus on its 4x4 models and its expanding lineup, including the Ranger PHEV, E-Transit Custom, Transit Custom PHEV, and Tourneo. The Ford Everest Ambiente RWD 2.0-litre bi-turbo diesel produces 187g/km of tailpipe CO2 emissions, well above the 141g/km limit for passenger cars this year.
Isuzu MU-X 4x2 Models Also Discontinued
While Isuzu Ute Australia (IUA) denied it would axe 4x2 versions due to the NVES, the company has communicated to its dealers its intention to discontinue all three 4x2 versions of the upgraded 2025 MU-X. The cheapest 4x2 model opens the lineup at $46,990 drive-away and is popular with fleets and budget-conscious buyers.
An IUA spokesperson said they were unable to comment on specifics relating to future model plans but acknowledged that the CO2 targets would be challenging for IUA and the majority of the industry. However, they equally recognized the importance of continuing to provide Australians with a choice of 4x2 and 4x4 SUVs.
Other 4x2 SUVs Remain
While other large off-road SUVs like the Toyota Fortuner and SsangYong Rexton are exclusively 4x4 and therefore classified as MB (Type 2) vehicles subject to a higher CO2 target, LDV Australia offers two 4x2 versions of its D90 large SUV. Ateco Automotive, the Australian distributor for LDV, stated that there are no plans to discontinue them at this stage, citing strong demand for the LDV D90.
MTAA: More 4x2s Will Likely Be Axed
Motor Trades Association of Australia (MTAA) chief executive Matthew Hobbs said the axing of more rear-drive ladder-frame vehicles that can tow over three tonnes from the local marketplace was inevitable due to the NVES.
He stated that car companies are moving swiftly to adjust to the NVES and that the different treatment of 4x2 versions of body-on-frame 4x4s puts them in the crosshairs for deletion.
