Government under pressure to allow grey car imports

After the Government decision of not proceeding with the lift of parallel import restrictions on used cars, the discussion is still ongoingGovernment under pressure to allow grey car imports.

The Federal Chamber of Automotive Industries (FCAI), in its attempt of avoiding grey car imports into Australia, has claimed lately that there have been some instances of used car imports from Japan which presented radioactivity and others linked to the Japanese mafia.

Some parties such as the Australian Importer Motor Vehicle Industry Association have claimed that FCAI intention it’s to keep the competition restricted and car prices artificially high.

As the Commission suggested, the relaxation of second hand car import restrictions should apply first to vehicles under five years old. If a car is relatively new there is no reason to keep any import restriction provided it complies with all safety standards recognised in Australia, and therefore, no reason to raise any concerns about safety, environmental and consumer protection.

By limiting source countries to those that have vehicle design standards consistent with Australian rules, there will be no reason to raise any concerns about safety, environmental and consumer protection. With right hand drive cars compliant with Australian standards, an obvious source country would be the UK which would bring to Australia prestige cars such as Jaguars, BMWs, Audis and other UK brands.

Having additional sources of competition will encourage car manufacturers and importers to enhance their product specifications, improving in overall average vehicle standards. With more competition, pressure would be higher and we could see some changes in new cars such as advanced safety features included as ‘standard’.

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