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Suzuki NZ says future CCS targets will penalise efficient small cars

by Robert Barry
January 23, 2024
in Featured, News
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Suzuki New Zealand automobile general manager Gary Collins has outlined how the brand will be affected by the future Clean Car Standard targets pending the latest government review.

“There remain strong drivers for distributors to be importing low-emission vehicles,” Collins says.

“We’re now in the new year and the 2024 targets have reduced by 11.1 grams per vehicle.  For an average-weight vehicle this means a target of 133.9 grams per kilometre.  But for a lightweight vehicle under 1200kgs, which is most of our range, the target is 113.6 grams per kilometre.

“So a Swift GL auto which is one of the most fuel-efficient ICE vehicles on the market, and more efficient than some hybrid models, will incur eight grams of penalty or $360 of fees that Suzuki NZ incur at time of PDI.

“While not ideal, these sorts of values are manageable.  

“The shift in 2025 is where the heat starts to come on. The targets shift down another 21.3 grams per km. While the penalties go up 50%.  So Swift GL auto moves to $1,957 per vehicle.  

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“So all distributors must have some BEV products from 2025 onwards to help offset the penalties incurred on ICE and hybrid models.  This coincides with Suzuki’s plans to add BEV models to the line-up.

“The 2026 and then 2027 targets are among the toughest in the world so the challenge is to have products developed in time.  There is discussion about whether our targets should be bought back into line with Europe to match model plans with a major market.  Our understanding is that there will be a review of the Clean Car Standard so the industry will be closely following the outcome of this.

“All brands are carefully planning their model line-ups, not only for achievement of current CCS targets, but also to build credits for future years.  And our model line-up has altered to minimise penalties with the move to hybrid powertrains for Vitara and S-Cross, along with expected improvements in emissions from the new Swift, strengthening our overall emission position. 

“We want to slowly transition our customer base up in price and technologies as not all our customers can afford, or necessarily want an electric vehicle.

“Some OEMs have jumped straight into being high-priced, high-technology brands.  We would imagine that many have felt they have moved too quickly given the removal of the Clean Car Discount programme.

“We now have one of the most comprehensive model ranges sub $30k and our more expensive models remain highly competitive in their segments.

“The new Swift is scheduled for New Zealand release in about the middle of the year and it’s sure to continue as the number-one selling light vehicle since the launch of the 2005 model,” he says.

Tags: Gary CollinsSuzuki New ZealandSuzuki Swift
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