SYDNEY, March 8 (Reuters) -

Volkswagen Australia said on Friday it was

concerned about the exit of electric vehicle makers

Tesla and Polestar from Australia's major

automotive lobby in protest over the organisation's criticism of

proposed vehicle emissions rules.

The German automaker said it supported the government's

proposed standards and wanted stronger incentives for clean car

importers, in stark contrast to the peak lobby group, which is

pushing to water down the rules.

"Our company's position is its own - not that of any

lobby group or membership organisation," a spokesperson said in

an email.

VW, which remains in the lobby group, was concerned

about the exit of Tesla and Polestar and was discussing the

situation, the spokesperson added, without giving specifics.

To get more electric vehicles on the road and cut emissions,

Australia has proposed vehicle efficiency standards that will

penalise car makers who import emissions intensive models and

reward those who bring in cleaner vehicles.

Polestar Australia, part-owned by China's Geely Automobile ( GELYF )

quit the Federal Chamber of Automotive Industries on

Friday, a day after Tesla did the same, and said the lobby

group's commentary against the proposed regulations had

"irrevocably damaged" public trust in the policy.

In a letter to the FCAI, Polestar said delaying or making

the standards less stringent would keep Australia a dumping

ground for old technology vehicles and force the emissions

burden elsewhere in the economy.

"The brand cannot in good faith continue to allow its

membership fees to fund a campaign designed to deliberately slow

the car industry's contribution to Australia's emissions

reduction potential," head of Polestar Australia, Samantha

Johnson, said in the letter.

Tesla quit the FCAI on Thursday and resigned from its board,

accusing it of making false claims about the proposed standards

and their effect on car prices.

In response to questions about the exits, the FCAI said on

Friday it could not support a standard that met the needs of the

owners of premium vehicles while leaving others with fewer

choices and higher prices.

The FCAI said its members represent more than 50 brands. Its

chair and two deputy chairs are from Mazda ( MZDAF ), Toyota ( TM )

and Mitsubishi Motors ( MMTOF ), respectively.

Australia's centre-left Labor government opened consultation

on the standards in February, and also released a "preferred

model" for the new standards.

It aims to introduce the new standard in 2025, which will

become more stringent each year, with the aim to hit an average

vehicle emissions intensity similar to the U.S. by around 2028.

Russia and Australia are among the only developed countries

without fuel efficiency standards.

The FCAI said earlier this week the government's preferred

option would raise prices and limit options, especially for the

pick-up trucks popular in the country.