SYDNEY, March 11 (Reuters) - Volkswagen

Australia said on Monday it had quit the policymaking committee

at the country's auto lobby, days after Tesla cut ties with the

group, as the German carmaker distances itself from a campaign

against new fuel standards.

In a letter sent to other members of the Federal Chamber of

Automotive Industries, Volkswagen said it quit the lobby group's

Policy Advisory Committee before a meeting later this week,

according to a spokesperson.

"Volkswagen Group Australia ... speaks for itself on public

and policy matters including the New Vehicle Efficiency

Standard," the spokesperson said in an email.

"A strong NVES is in the best interests of this country."

The move widens a breach first opened last week when

electric car maker Tesla accused the group of making

false claims and quit in protest over its campaign against the

new standards. Fellow automaker Polestar followed a day later.

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

Australia last month proposed vehicle efficiency standards that

will penalise car makers who import emissions-intensive models

and reward those who bring in cleaner vehicles.

Russia and Australia are among the only industrialised

countries without the standards.

The peak automotive lobby group has said the government's

preferred option would raise prices and limit options,

especially for the pick-up trucks popular in Australia. It wants

the government to water down its policy.

Toyota ( TM ) which tops auto sales with its range of

pick-up trucks and SUVs, last week backed the lobby group's

position and called on the government to revisit its plan.

Energy Minister Chris Bowen hinted on Sunday the government

was open to a compromise and "where an idea has been made to us

sensibly, we will consider it sensibly."