(Press Release) The peak body representing the Australian automotive industry, the Federal Chamber of Automotive Industries (FCAI), has given its support to a proposal to offer motorists a $2,000 rebate to switch to new, safer and more fuel efficient vehicles.

"The car industry welcomes any move to support motorists who want to upgrade to safer and more fuel efficient vehicles," FCAI Chief Executive Andrew McKellar said.

"One in five vehicles on Australian roads is more than 15 years old with many of those not meeting the environmental and safety standards we now expect," he said.

"A key part of any strategy to reduce carbon emissions from road transport must address the impact older cars have on the environment," Mr McKellar said.

"The industry will obviously need to work through the finer detail of this proposal before it can be implemented," he said.

The Australian automotive industry also supports a proposal to develop a regulated carbon dioxide emission standard for new light vehicles.

"The industry is confident we will reach agreement with any incoming government on the detailed structure of a new standard, including ways to recognise the uptake of emerging low emission technologies and alternative fuels," he said.

"The industry is proud of the improvements in engine and transmission technologies in recent years that have helped reduce emissions from new vehicles," he said.

"The intense competition between brands has led to improved fuel efficiency and a reduction in CO2 emissions of 10 per cent in the past five years," Mr McKellar said.