Renault "well-positioned" to meet new Australian emissions regulations

Penalties under the New Vehicle Efficiency Standard (NVES) are now in effect, but Renault Australia says it isn’t worried about being able to meet any mandated targets.

The French brand only sells two electric vehicles (EV) in Australia, the Megane E-Tech and Kangoo E-Tech, and only recently introduced a mild-hybrid in the form of the Duster. That’s despite Renault offering several models with mild-, full-, or plug-in hybrid powertrains, plus more EVs, in overseas markets such as Europe.

Though hardly any of those European models have been confirmed for Australia, the brand’s local general manager Glen Sealey says nothing is off the cards and maintains NVES is just another regulatory framework to adhere to.

“From a Renault perspective… we always respect the umpire’s decision. That’s the regulatory framework that is out there today, and that’s the framework that we will operate under,” he told media at the local launch for the Duster.

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Above: Renault Megane E-Tech

“Renault as a brand is European-based, so we have a fantastic product range to operate within an environment where NVES is in play.”

Renault, like every other manufacturer operating in Australia, is now obliged to meet set average carbon emissions targets across its fleet each year, or be penalised $100 per g/km of CO2 for every vehicle that exceeds the target.

The brand’s passenger vehicles fit into the Type 1 NVES category, which means the fleet is currently subject to average carbon dioxide emissions of 141g/km for 2025. This limit will drop each year, eventually reaching 58g/km in 2029.

Unfortunately for Renault, only mild-hybrid Duster variants and the Arkana are below that limit, which likely won’t be enough to offset emissions from the rest of the fleet. The brand’s commercial lineup – Kangoo, Trafic, and Master – is subject to the current Type 2 vehicle limit of 210g/km, and all three are ‘clean’ enough for now.

Above: Renault Kangoo E-Tech

Renault Australia has confirmed six new models and updates will come in the next 18 months, including the new Captur – potentially with hybrid tech – and the niche Renault 5 Turbo 3E, which will be an exclusive performance EV.

While unconfirmed, further models are likely to have some degree of electrification.

“When we look at those six new models to come, there’s a bit of water under the bridge, there’s currency, there’s regulatory changes, there’s tariff changes rolling around the place,” Mr Sealey said.

“It’s a very dynamic environment. So for me to sit here and say ‘I’ll definitely have that car tomorrow’, I wouldn’t be prepared to do that. 

“But what I can say, I do know I’ve got six of them coming. They may vary between now and then, but in terms of electrification, going back to that, you would have to say there is still going to be a baseline for electrification in Australia.”

Above: Renault Symbioz (overseas model)

Mr Sealey explained that in 2024, before NVES came into effect, EVs held a market share of 8.0 per cent. Following the start of the NVES, in the first half of 2025 the share remained similar at 7.6 per cent.

“So the one thing that we do see, and all car companies must respect, is [that] it is the consumer that drives the market, and so it will be the consumer that dictates whether electrification is adopted further,” Mr Sealey said.

When asked whether Renault Australia is expecting to have to pay fines for exceeding CO2 limits, Mr Sealey replied, “We’re well-positioned to operate within an NVES environment.”

“When you look at Renault, we have typically four-cylinder engines, very efficient, we’re lightweight, so you would have to say, no,” he said.

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