Fines for surpassing emissions targets will be passed onto consumers, according to Mazda Australia, but price rises will not have a direct correlation with variant-specific penalty amounts.
Mazda Australia has confirmed its models will increase in price as a way to combat fines accrued from the New Vehicle Efficency Standards (NVES), as its new hybrid system is still at least 12 months away.
Speaking to Drive, Mazda Australia boss Vinesh Bhindi said the prices rises will not directly correlate to particular models and engines – as in, if a CX-5 turbo receives a fine, that figure will not be added to the retail price – but buyers will understand why they are paying more.
“Compliance in the way that, yes, if it's above the targets, they have fines involved, but if that's what the customer wants – and the customer will be well educated – there is an element of fines in the pricing,” Bhindi said.
“It's not direct because it's behind the scenes – it's not a clear, ‘this car, this fine’, it's more about as a brand where we sit.
“If anybody is assuming there will be no impact on price, and I know that's been said by politicians that suits them, [they would be wrong].
“There is always a price to pay when you have new technology, an expensive technology, and battery technology is not cheap – there will be a cost.
“It's how much? How soon? All of those things are yet to be determined.
“But I think an average buyer will understand that this transition is important – we must reduce CO2, we must all play our part, and they [the customer] are willing to pay a price for it.”
With NVES now being enforced, since July 1, for each of the aforementioned CX-5 turbos that are sold, which emit 191 grams of carbon dioxide per kilometre against the target of 148g/km, it would amass a fine of around $4300 per vehicle sold (based on a penalty of $100 per g/km of CO2).
Brands will also receive discounts when paying fines early, but Mazda Australia is also currently missing any form of battery electric vehicle (BEV) that would accrue credits that can be used to offset penalties.
Next year – and for each following calendar year – emissions targets will become tighter, meaning fines can quickly rack up if cleaner powertrain options are not introduced.
Mazda is working on its own full-hybrid powertrain, based on the new Skyactiv-Z petrol engine family, which will debut in the third-generation CX-5, but not due in Australia until likely 2027.
Until then, Mazda also has plug-in hybrid powertrains available across its CX-60 and CX-80 SUVs, which is also expected to proliferate across to CX-70 and CX-90.
Those aforementioned models, all built on Mazda’s Large Product Group platform, also offer newly-developed inline six-cylinder petrol or diesel engines with mild-hybrid technology.
When asked if Mazda would be open to purchasing credits from other brands, Bhindi said he had not “considered that”, but would be open to the possibility in the future.
“We're not in discussions with anybody, but if that's the future, then that's the future,” Bhindi said.
“But I think our first point of call is, how do we ensure we maximise from the portfolio we have.”
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
