Ram’s local boss has warned that new vehicle prices will soon be forced to climb in Australia, with all internal combustion engine (ICE) vehicles to be impacted by the government’s New Vehicle Efficiency Standard (NVES).
“NVES will impact all ICE sales in Australia. It will have an adverse impact on pricing going forward,” Ram Trucks Australia general manager Jeff Barber told media at this week’s Ram 1500 Rebel launch.
“We have nothing in that space that could offset the NVES. We, unlike other brands, don’t have a suite of battery-electric vehicles we can bring in and so forth, so it’s going to be a cost to selling vehicles in Australia, and that cost will be passed on at some point.”
Ram’s cheapest pickup is currently the 1500 Laramie Sport, which costs $141,950 before on-roads. Its entire lineup is imported to Australia in left-hand drive, before being remanufactured in right-hand drive in Victoria.
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NVES laws came into effect at the start of 2025 as a means to force manufacturers to sell ‘cleaner’ cars, with brands to be slugged with monetary penalties for exceeding each year’s carbon dioxide emissions limit.
As Ram only sells its 1500, 2500, and 3500 large American pickups in Australia, it’s subject to the government’s Type 2 CO2 limit. In 2025, that limit is 210g/km, which will drop to 180g/km, 150g/km, and 122g/km in subsequent years.
The brand hasn’t quoted CO2 emissions for its current lineup of vehicles, but the last-generation 1500 fitted with the 5.7-litre Hemi V8 engine produced a claimed 283g/km – the new 3.0-litre Hurricane inline-six is claimed to be more efficient, but it’s possible it still exceeds this year’s limit.
Ram’s only feasible options to combat NVES, at least at the moment, are the all-electric Ram 1500 REV and the Ram 1500 Ramcharger extended-range electric vehicle (EREV). Neither of these vehicles are currently available in Australia, despite the REV being confirmed for a local arrival in 2023.
While both models could theoretically make their way here, Mr Barber says the brand won’t be swayed by government pressures.
Above: Ram 1500 REV (left) and Ram 1500 Ramcharger
“No, I don’t think NVES will force our hand for Ramcharger. The price point of Ramcharger is such that it’d be a very, very expensive vehicle in this market,” he said.
“It is something that we’ll continue to see where the demand for that is, so it won’t be driven by NVES, no.”
A way brands can avoid paying NVES fines is by purchasing credits from other brands that are well below the current CO2 limits, ideally from electric vehicle brands with zero CO2 emissions, such as Polestar and Tesla. When asked whether Ram could explore that avenue, Mr Barber said “it’s too early for that”.
“And I think that … the number of credits available will be small compared to the number of ICE vehicles that are picking up debits,” he added.
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