Australia’s automotive industry is warning jobs could be at risk if the government moves to impose a carbon tax on cars.

It’s reported the federal government is considering slapping vehicle emissions targets on the car industry to make people view electric and low emissions cars more favourably.

Currently, only two of Australia’s top 20 cars meet the carbon-emissions target of 105gCO2/km, which could see the rest facing price hikes.

CEO of the Australian Automotive Dealers Association David Blackhall says imposing penalties on non-compliant vehicles isn’t the golden solution.

“What about affordable energy? What about fuel quality? What about infrastructure?

“What about all the things that make buying electric cars so problematic?”

Mr Blackhall says retail car dealers employ up to 150,000 people and jobs could be in jeopardy if a tax is implemented.

“Anything that dampens down demand like a tax imposition… concerns us because jobs, apprenticeships get brought into play.”

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The Energy Minister has flatly denied the government is considering a carbon tax on cars, telling Macquarie Radio’s Chris Smith today it won’t be happening.

“A carbon tax on cars is about as likely as Elvis coming back from the dead,” he said.