SYDNEY, March 26 (Reuters) - Australia said on Tuesday

it would relax proposed carbon emission rules for some popular

pick-up trucks after the country's auto lobby raised concerns

the changes could raise prices of cars and lead to fewer options

for consumers.

To boost the uptake of electric vehicles and lower

emissions, Australia has proposed vehicle efficiency standards

that will penalise automakers that import emissions-intensive

models and reward those who bring in cleaner vehicles.

But that led to a split within the Federal Chamber of

Automotive Industries (FCAI), Australia's automotive body, with

EV makers Tesla and Polestar early this month quitting

in protest over the group's campaign against tougher emission

standards.

Energy Minister Chris Bowen said some popular pick-up

trucks, known in Australia as "utes" or utility vehicles, and

mostly used by builders and farmers, would now be classified as

light commercial cars. That means those models would not have to

meet tougher fuel economy rules.

"Not everybody has got everything they have asked for. Some

people wanted us to go harder and faster, some had concerns and

wanted us to slow, but everybody here today has had a say,"

Bowen said during a press conference, flanked by Australian

leaders of top car companies.

The relaxation in rules comes after a similar move by the

United States last week. The Biden administration slashed its

target for U.S. electric vehicle adoption from 67% by 2032 to

35% after industry and autoworker backlash in Michigan, which

could play a decisive role in the 2024 presidential elections.

The FCAI had criticised the Australian government for trying

to impose "extremely aggressive targets and severe penalties to

be effective on very short notice".

Australia is the only developed country apart from Russia to

either not have or be developing fuel efficiency standards, and

the Anthony Albanese-led centre-left government has been looking

to implement tougher emission rules since coming to power in

2022.

Though the emissions scheme will begin on Jan. 1, 2025,

manufacturers will not face penalties until July. The government

plans to introduce the legislation in parliament on Wednesday.