SA wants feds to protect auto sector

South Australian Premier Jay Weatherill says he will put a range of measures to the federal government aimed at protecting the local auto industry from proposed changes to tax concessions on company cars.

Mr Weatherill will meet federal Industry Minister Kim Carr on Friday afternoon over the changes.

Mr Weatherill says preliminary estimates show the federal government's proposed changes to the fringe benefits tax (FBT) could significantly reduce new car sales, hitting local car manufacturers Holden and Toyota.

He says the timing of the changes couldn't have been worse as the state is in sensitive negotiations with Holden over its future in South Australia.

Mr Weatherill says he will be "very disturbed" if those talks are derailed by the FBT changes.

"The timing couldn't be worse but we think there is a way of remedying the situation and we are keen to sit down with Minister Carr to remedy this situation," he told reporters in Melbourne.

Mr Weatherill says he will put forward options including an FBT exemption for locally-made cars to Senator Carr.

He says any drops in car sales would send the wrong message to Holden and Toyota's parent companies about their continued investment in Australian car manufacturing.

Federation of Automotive Parts Manufacturers president Jim Griffin said the industry was very concerned about the lack of consultation over the changes.

"We're doing a lot to try and drive sales into the industry and anything that's going to put people off buying a motor vehicle in this country is bad for the industry," he said.

Victorian Automobile Chamber of Commerce executive director David Purchase said the changes were disgraceful and must be reversed.

"Policy on the run, no consultation whatsoever and there will be job losses, serious job losses," he said.

Mr Purchase said Australians were paying a high price to address climate change.

"This has been put up as a necessary funding saving to fund an emissions trading scheme."