Ram Trucks Australia Braces for Price Increases Due to Emissions Regulations

The Australian Government’s stricter emissions regulations could lead to an increase in showroom prices for new vehicles, as per Ram Trucks Australia’s general manager Jeff Barber. During the launch of the new Ram 2500 Warlock, the first Hemi V8-powered Ram pickup available in Australia in nearly two years, Mr. Barber discussed the impact of the federal government’s New Vehicle Efficiency Standard (NVES) on the brand’s model range.

“It’s too early to determine at this point,” Mr. Barber stated. “It may result in price hikes, similar to what has been seen in other segments. Fortunately, despite the government’s potential price increases, consumers still have options.”

While Mr. Barber did not specify which Ram models might see price increases, by how much, or when these increases could occur, he indicated that Ram prices may be influenced by external factors.

The NVES, now in its second year, establishes fleet-average carbon dioxide (CO2) emissions targets for each vehicle supplier. These targets become more stringent each year until 2029 under the current scheme. Brands with final emissions values above zero face a penalty of $50 per outstanding NVES unit, with a maximum civil penalty of $100 per unit if the infringement remains unpaid.

Many of Ram’s products are currently exempt from the NVES because the regulations do not apply to vehicles with a gross vehicle mass (GVM) exceeding 3.5 tonnes. The Ram 2500 Warlock, launched recently, falls within this exemption category with a GVM of 4495kg.

However, starting from June 30, 2027, a new Australian Design Rule (ADR 114/00) will require certain ‘light-duty’ vehicles with a GVM of more than 3.5 tonnes but no more than 3855kg to undergo emissions testing.

Submissions regarding whether these vehicles should be subject to the NVES from July 1, 2027, closed on July 20, 2026. Yet, a final decision has not been announced.

Several manufacturers have already raised showroom prices, attributing the NVES as a factor. Ford Ranger pricing saw a $250 increase for non-PHEV models, while the iconic Mustang’s price rose by $5000, citing the NVES. Hyundai Australia also increased prices for its performance-oriented N models due to emissions regulations.

Ram 1500 prices also increased in mid-2025, with the Ram 2500 Warlock now priced at $157,950 before on-road costs. The Ram 2500 and 3500 models have maintained their prices despite updates.

Despite criticism from industry executives, federal Minister for Climate Change and Energy Chris Bowen has defended the government’s transport policies, pointing to a decline in transport emissions and overall greenhouse-gas emissions reduction as evidence of progress.

In conclusion, the automotive industry in Australia is experiencing changes due to emissions regulations, potentially leading to price increases for certain vehicles. Manufacturers are adapting to meet these standards while consumers continue to have options in the market. The future of vehicle pricing and emissions regulations remains a topic of interest and discussion within the industry.