Tariff cut reaps consumer rewards

AUSTRALIAN car companies have reacted to the five per cent reduction in vehicle import tariffs introduced on January 1 in a variety of ways, including cutting retail prices, introducing drive-away pricing and improving standard specification.

Among the economy car contenders, Kia has extended driveaway pricing to its entire passenger car range, including the Sorento 4WD wagon, while its Korean rival Hyundai has reduced pricing for Getz and Elantra and added value to selected models.

Suzuki, meanwhile, is claiming the tariff cut has allowed it to add a $500 free fuel voucher for its Liana small car – although the offer runs out on February 13.

Other Japanese manufacturers have also got into the act, with Mitsubishi reducing its Lancer sedan pricing (other models released last year had post-tariff stickers) and Honda making a series of specification and pricing changes.

Among them is an upgrade to the Accord Euro Luxury, which gets 17-inch wheels, upgraded suspension and, for both Asian Euros, a full-size spare wheel.

Toyota has passed on the bulk of the tariff benefit, applying a 3.5 per cent weighted average RRP reduction to imported passenger cars such as Echo, Corolla, Prius and Tarago.

Its sister brand Lexus has also made pricing reductions, claiming savings ranging from $2000 on the IS200 Sports manual sedan to $8000 on the flagship LS430.

Other luxury car manufacturers to come forward with revised pricing include Audi and BMW, with the latter also making adjustments to its Z4 roadster and X3 and X5 all-terrain wagons as a result of the free-trade agreement between Australia and the United States, which also came into effect on January 1.

The Z4 now starts from $74,000, while the new entry points for X3 and X5 are $63,900 and $79,900 respectively.

Holden was among the first to announced a revised 2005 pricing structure - see separate story.