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Emissions regulations drive up Mustang price

Ford increases the list price of its Mustang sportscar to cover NVES emissions penalties

8 Jul 2025

FORD Australia has slapped a $5000 price increase across its Mustang sports car line-up as the effects of the New Vehicle Efficiency Standard (NVES) make their presence known.

 

The NVES penalises new vehicle importers at a rate of $100 per gram of CO2 per kilometre its vehicles emit above a predetermined level.

 

While importers can offset NVES penalties by selling low-emission and new energy vehicles, Ford Australia’s reliance on diesel-powered Ranger and Everest models, coupled with the Mustang’s availability as a petrol-only model, left the importer with little choice but to pass penalty costs on to its customers.

 

Speaking with GoAuto this week, a Ford Australia spokesperson confirmed the impact of the New Vehicle Efficiency Standard played a part in driving up the price of the Mustang range.

 

“The introduction of the New Vehicle Efficiency Standard was a factor in our decision,” said the spokesperson.

 

“Other influences that typically impact pricing include shipping and logistics costs, exchange rates, market dynamics, and customer demand.

 

“A range of factors impact pricing, and from time to time we adjust our recommended manufacturer’s list prices based on these.

 

“Regulatory considerations are one factor, but pricing decisions are always the result of a complex analysis process.”

 

Complex or not, the fact that Mustang is now priced from $71,990 plus on-road costs means it is dearer now that it has ever been – a fact that may see the American-made sports car knocked from its position atop the segment sales ladder.

 

As recently as April, the Ford Mustang had led the sports car herd, outselling its nearest rival by a factor of five.

 

That momentum carried into June where the Mustang’s year-to-date sales tally shot to 2895 units, or more than six times the number of second-place entrant, the Subaru BRZ.

 

Whether the increase in list price will deter Mustang buyers remains to be seen, with price changes effective from July 1.

 

2025 (MY26) Ford Mustang pricing*:

 

EcoBoost Coupe (a)

$71,990

(+$5000)

GT Coupe

$83,990

(+$5000)

GT Coupe (a)

$86,990

(+$5000)

GT Convertible (a)

$92,667

(+$5000)

 

*Pricing excludes on-road costs.


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