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Australia lifts car import restrictions to drive local competition

Xinhua, February 10, 2016 Adjust font size:

Australians will from 2018 be able to bypass local car dealers and import near-new vehicles from overseas, the federal government announced on Wednesday.

In an effort to reduce the price of buying a new car, the government said it would be lifting restrictions, fees and red tape normally associated with buying a new car from overseas.

The move is expected to drive up competition among local dealers and reduce prices once the local car manufacturing industry dies in 2018.

Major Projects Minister Paul Fletcher said the move could result in more than 30,000 Australians importing a new car directly from either the UK or Japan, but said initial import levels would be "modest".

"It is true car dealers are not enthusiastic about this change, but we expect the quantity of imports to be modest," Fletcher told The Guardian on Wednesday.

"Most Australians will continue to purchase cars directly imported by manufacturers and sold through their existing dealership network."

Meanwhile Michael Bradley from the Automobile Association of Australia said the government's decision to lift the restrictions would benefit those in the market for a new car.

"It is a big win for consumers and a decision that will open up choice and increase competition within the Australian car market," Bradley said on Wednesday.

"It will also produce environmental and safety benefits because it will encourage faster renewal of Australia's vehicle fleet.

"Australia's private car fleet has an average age of 10 years, which is quite old by global standards and the fact that Australians often pay over the odds for new cars plays no small part in this."

Under the revised laws, Australians will be able to purchase an imported car once every two years, so long as it has no more than 500 kilometers on the odometer and is no more than 12 months old.

Japan and the UK were chosen as initial countries of origin for unrestricted car imports as they both right-hand drive nations with similar, stringent safety standards. Endit