Tesla has been at odds with the peak car maker lobby group over the government’s looming vehicle emissions policy.

Tesla has been at odds with the peak car maker lobby group over the government’s looming vehicle emissions policy.Credit:AP

Tesla,which sits on the board of the FCAI,also said it had lodged a request for the Australian competition watchdog to investigate the organisation for “inappropriate” comments it has made foreshadowing how competitor brands may implement price changes in response to regulations.

“Over the past three weeks,Tesla considers that the FCAI has repeatedly made claims that are demonstrably false,” the letter said.

“Considering these concerns,Tesla will cease to be members of the FCAI at the end of the 2023/24 financial year.”

Following years of inaction by previous governments to address rising motor vehicle emissions,the Albanese government is designing a “fuel efficiency standard”to cap the average emissions of a carmaker’s overall fleet of vehicles sold each year from January 1.

The limits,which will apply only to new cars,are designed to reduce emissions by 60 per cent by 2030 by encouraging manufacturers to import either more efficient combustion-engine cars or more electric vehicles,with penalties for those that breach their cap.

Australia is the only developed country apart from Russia that does not impose mandatory pollution caps,with one of the world’s highest emissions per kilometre travelled,but the government’s long-awaited proposed changes have nonetheless opened a rift in the auto industry.

Manufacturers including Hyundai,Kia and Volkswagen are throwing their support behind the scheme,while others,including top-selling brand Toyota,believe it is too ambitious.

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In its submission released on Wednesday,the Federal Chamber of Automotive Industries – the biggest industry group for auto giants operating in Australia – said it supported introducing a fuel efficiency standard,but was deeply critical of the government’s proposed five-year timeframe to meet the targets.

The chamber said the plan in its current design would significantly lift the price of new cars and force manufacturers of models facing the harshest penalties,such as utes,to consider limiting their offerings in Australia or leaving the country entirely.

“Implementation of the proposed targets on the proposed timeline with the proposed penalties will have a disastrous commercial impact on many Original Equipment Manufacturers[OEMs] and may result in the exit of some models from the Australian market,if not the withdrawal of some OEMs entirely,” it said.

FCAI did not respond to a request for comment on Thursday.

The Albanese government rejects the industry group’s claims,saying there is no evidence of fuel efficiency standards lifting consumer prices elsewhere in the world,while lower fuel and maintenance costs for more efficient and cleaner models could save motorists an estimated $1000 per vehicle on average each year.

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Independent experts at the Grattan Institute think tank have rejected claims that the changes will drastically increase consumer prices,citing their analysis showing the average new car price would rise by as little as 1 per cent – or $500.

The Electric Vehicle Council,which also represents most of Australia’s major carmakers,said new vehicle efficiency standards had been proven across the world to do two things:improve customer choice and lower fuel bills.

“Unfortunately,they’ve also been proven to attract scare campaigns by dodgy lobby groups,” chief executive Behyad Jafari said. “It’s one thing for companies to represent their own interests and profits,but when that veers into knowingly spreading misinformation it’s important that gets called out.”

The suggestion that the price of any vehicle model would rise significantly “could only be supported if you base your modelling on completely unrealistic assumptions,which is exactly what we now see the FCAI has been doing”,Jafari said.

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