Suzuki Australia General Manager Tony Devers suggested all levels of government could provide leadership with incentives to make globally efficient cars cheaper for all Australians.

"Compared to what’s happening in the rest of the world, the lack of policy and direction in Australia is hard to fathom," said Devers.

"As it stands in Australia at the moment, the only customers who can benefit from a decision to purchase a more fuel efficient car are those who can afford vehicles costing between 60 and 75 thousand dollars, with the price of a BMW 5-Series diesel dropping from $81,000 to $76,000.

"Where is the incentive for people wanting to purchase a much less expensive car that’s good for the environment?"

Devers said the time had come to define exactly what constitutes a green car.

"Look at what’s happening around the world – in countries like France, Belgium and Italy – where bonuses exist for cars emitting less than 130 grams of CO2 per kilometre.

"We call on the government to use that figure, defining a green car as one with CO2 emissions of 130g/km or less."

Devers said Suzuki would this year become the first local car company to offer a genuine green car for around $13,000, when the Alto goes on sale in August.

With a three cylinder 1.0-litre engine, the Alto emits just 113g/km, while still offering advanced safety features such as side curtain airbags and stability control.

Suzuki unveiled the car to customers at the recent Melbourne International Motor Show, and Devers said the response from potential customers was enormous.

He added that almost every manufacturer had a vehicle similar to Alto available in their global product portfolio.

"It is remarkable that customers shopping at this end of the market should not be rewarded for thinking with their conscience, as well as their wallet."

Devers said the time had come for rewarding customers who based their decision on fuel consumption and greenhouse gas emissions.

"It’s time to get serious about greening the industry by linking subsidies to efficiency standards and supporting environmentally friendly vehicles like Alto with real benefits through taxation changes."

Devers said Australia was lagging behind the world in its slow-paced approach to reforming emission practices.

"In Australia, the most recent ABS Survey of Motor Vehicle Use revealed the average motorist emits 250 grams of CO2 – or five ‘black balloons’ of harmful greenhouse gas – for every kilometre driven.

"The industry average for Australian motorists is 15,000 kilometres per year, equating to 75,000 balloons.

"Alto emits just 113 grams of CO2 per kilometre – or just over two balloons. Over a year of travel, Alto will produce 30,000 balloons or around 60 per cent less."

Devers said the Alto’s remarkably low emission figure was matched by its frugal fuel consumption.

"The ABS survey showed the average Australian fuel consumption is 11.5 litres of fuel for every 100 km, while the Alto uses just 4.8.

"Over one year of travel, that means the average car will consume more than 1700 litres of fuel while Alto will use about 700; again around 60 per cent less."

On the basis of those figures, Devers said driving a green car made economic sense as well.

"At today’s price of $1.20 a litre that one year of travel will cost the average motorist $2040 while an Alto driver will only have to spend $840.