Recent independent vehicle testing revealed that real-world driving conditions in Australia often produce different results than controlled laboratory tests. In fact, 76% of the 136 vehicles tested used more fuel on Australian roads than their lab-based figures suggested.
When you’re trying to balance cost, carbon, compliance and complexity, understanding these discrepancies is critical.
Thanks to the Federal Government’s Real-World Testing Program, run by the Australian Automobile Association (AAA), you can now get real-world data on vehicle performance.
We sat down with Jason Smith, Program Director of the Real-World Testing Program to find out how you can use these insights to make smarter decisions about your fleet.
Interleasing: What does the Real-World Testing program look at when testing and comparing vehicles?
Jason: The program is about transparency. It tests the on-road performance in terms of fuel consumption and CO2 emissions which carmakers must also report on a sticker on the windscreen of each car from mandatory lab testing.
We compare how vehicles perform in the real-world against the manufacturers’ lab results to help consumers and fleet buyers understand which vehicles perform as advertised, and which fall short.
We also test the tailpipe emissions that impact air quality. These are noxious emissions, and they are regulated across the world. We test these to find out whether new cars meet those regulations in real on-road conditions, not just in the lab.
Interleasing: What’s the most important lesson organisations need to know about the Real-World Testing program?
Jason: The lesson is that lab test results don’t always translate into real-world outcomes.
The Real-World Testing program has proven you can’t always rely on car manufacturers’ laboratory test data to understand a vehicle’s on-road performance.
We’ve now tested 136 cars in real-world conditions and 24% match or perform better on-road than reported by the carmaker based on its lab tests.
76% used more fuel on-road than reported by carmakers based on lab tests, although the amount by which they varied was inconsistent. The largest was 35%. For a 50-vehicle fleet, this discrepancy could translate to thousands of dollars in unexpected fuel costs annually.
Interleasing: What may surprise organisations the most about the results?
Jason: A couple of things come to mind.
There is a real risk that the gap in results between laboratory tests and the real-world will widen. Our program has looked at six new or updated versions of models previously tested and found the gap between performance in the lab and the real-world had increased for four out of the six.
This is why ongoing independent real-world testing is important. It helps keep track of how car manufacturers are responding to increasingly stringent emissions regulations and ensures the quality of consumer information does not deteriorate.
There is also a lack of clarity around the term ‘hybrid’ between car makers. The word increasingly features in marketing material from carmakers, but there are several different technologies, including full hybrids and mild hybrids that use electric motors in different ways.
And while some hybrids dramatically reduce fuel consumption, improved performance is not a given. For example, we have seen on hybrid version of a vehicle use more fuel on-road than its internal combustion engine equivalent. On the other hand, we’ve found another model’s hybrid version to use 50 per cent less fuel on-road than its ICE variant.
Accessing Real-World Testing data helps consumers and fleet managers better understand exactly what benefits they can expect from a particular hybrid vehicle. As environmental performance becomes more important for organisations, our data insights help them shape plans for the make-up of their fleets in the future – and allows them to strategically assess whether vehicles meet their budgets and people’s needs.
Interleasing: How can organisations use Real-World Testing insights and data to improve their operations?
Jason: The purpose of the program is to help organisations feel confident about budgeting, forward planning and sustainability targets.
Any fleet manager who wants to save money on fuel consumption should use the results to satisfy themselves that the vehicle they choose won’t land them with higher-than-expected fuel costs.
Likewise, fleet managers tasked with building cleaner fleets to reduce environmental impact can use our results to understand which cars perform as advertised.
Generally, lab tests are not a reliable indicator of real-world performance. Making environmental commitments based on those test results can be risky. The Real-World Testing program provides an independent validation point so procurement managers can make smart, real-world data-driven decisions about their fleet of vehicles.
Smart Takeaways for Fleet Decision-Makers
Real-world testing helps you see how vehicles actually perform on Australian roads, not just how they perform in controlled laboratory conditions.
This gives fleet and procurement teams a clearer view of the true fuel, emissions and cost implications before decisions are made.
Use independent results to build confidence by showing which vehicles genuinely support cost control, compliance goals and environmental targets.
It proves that not all hybrid or low-emission claims are equal, helping you choose vehicles that deliver measurable benefit and fit-for-purpose performance.
When combined with your own fleet insights, Real-World Testing data creates a stronger evidence base for budgeting, forward planning and sustainability strategies.
Data for decisions that stack up in the real world
Performance is only one piece of the fleet operation puzzle. While it's important, your vehicles also need to serve your budget, your people's needs, and be fit for purpose.
Real-world testing data helps you remove uncertainty from vehicle performance, so you can make informed decisions and build a robust fleet.
The key is not to rely on a single data source. While laboratory tests provide standardised comparisons, real-world testing shows performance in Australian driving conditions. Your own fleet data reveals important insights about your fleet. Together, these create a complete picture that helps you navigate the complexity of fleet management.
To access Real-World Testing results, visit the Real-World Testing Program website.
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