Australia's peak car industry body claims that the new cars are really environment friendly and the emission of carbon dioxide from these cars have hit the lowest record.

The Federal Chamber of Automotive Industries reports that the average carbon dioxide emission dropped nearly 2 per cent in 2009 to 218 grams per kilometer.

Improvements in engine technology have enabled Australia to cut its emissions, says industry body's Andrew McKellar.

According to McKellar, motorists have become very cautious these days and prefer fuel efficient vehicles and the ones which cause less pollution. The latest vogue is better engines and better transmission that is ecologically friendly.

"We are making rapid progress. We have achieved our target for 2010 a year ahead of schedule and industry is working with Government to set a new target for 2015 and beyond", Kellar added.

Hybrid, solar and electric cars are yet to hit the market and may wipe out carbon emissions completely. However, the prices and possibility of these cars for the market is yet to be assessed.