EU automakers welcome improved market access under EU-Australia FTA

Brussels, 24 March 2026 - The European Automobile Manufacturers' Association (ACEA) welcomes the conclusion of negotiations for a free trade agreement (FTA) between the European Union and Australia.

This FTA strongly reaffirms the EU's commitment to open and fair-trading relationships and brings closer a market of almost 28 million consumers.

The tariff reductions on vehicles will put EU exports on an equal footing with other major auto exporting countries, who already enjoy duty free access to the local market. Automotive parts will also be fully liberalised. This will allow for enhanced access to an Australian passenger car and truck market of over 900.000 registrations per year.

Additionally, ACEA welcomes the understanding that Australia will reform its luxury-car tax. While the tax applied to the sales of all vehicles above a certain price-threshold, the vast majority of cars in the 'luxury' category were European. The policy was effectively discriminatory towards EU vehicle exports. ACEA also welcomes the provisions on access to critical raw materials that are included in the agreement.

The European auto industry supports the EU/Australia FTA - however our members cannot begin to benefit until the agreement comes into force. We ask the European Commission and, in their turn, EU member states and the European Parliament, to give their timely approval to allow for its implementation as soon as possible.

About ACEA

• The European Automobile Manufacturers' Association (ACEA) represents the 17 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Stellantis, Toyota Motor Europe, TRATON GROUP, Volkswagen Group, and Volvo Group.
• Visit www.acea.auto for more information about ACEA, and follow us on https://www.x.com/ACEA_auto or https://www.linkedin.com/company/ACEA/

Contact:

• Camille Lamarque, Media Relations Manager, [email protected], +32 2 738 73 16

About the EU automobile industry

• 13.6 million Europeans work in the automotive sector
• 8.1% of all manufacturing jobs in the EU
• €414.7 billion in tax revenue for European governments
• €93.9 billion trade surplus for the European Union
• Over 8% of EU GDP generated by the auto industry
• €84.6 billion in R&D spending annually, 34% of EU total