$166m move to boost BEVs

Australia’s commonwealth government is offering A$150 million (NZ$166m) of low-interest loans to essential workers and those earning less than $100,000 per year to encourage the purchase of battery electric vehicles (BEVs).

The move has been welcomed by the Federal Chamber of Automotive Industries (FCAI) to boost sales of zero-emissions models.

Tony Weber, chief executive, says Australia is mirroring global trends by experiencing a slowdown in the growth of BEV sales, in spite of the increasing number of brands and models entering the market.

“Growth in demand for battery electric vehicles is easing in markets around the world as governments remove incentives and consumers face the realities of making the shift which includes higher purchasing prices, availability of recharging infrastructure and models that meet their work and recreation needs,” he explains.

“Less than 84,000 battery electric vehicles have been sold in Australia this year comprising around 7.4 per cent of new vehicle sales.  

“Frankly, this is a disappointing result and well below our forecast at the start of the year of around 11.1 per cent, or about 135,000 sales.”

Weber, pictured, says the announcement of the loans “is a good initial step to support a small and specific group of consumers”.

He notes it is also significant the government has recognised the need to do more to support BEV sales if the industry is to get close to achieving the emissions reduction targets under the New Vehicle Efficiency Standard, which starts on January 1, 2025.

The standard is similar to the clean car standard already operating in New Zealand that targets light-vehicle imports.

Weber adds the government should take further measures to encourage consumers into low-emissions models by extending the fringe benefit tax concession to plug-in hybrid vehicles, which is set to end on April 1, 2025, and removing the five per cent import tariff on light commercial EVs.

“Increasing consumer demand for plug-in hybrid and hybrid vehicles shows that consumers are prepared to move to low-emission technologies,” he continues. 

“The opportunity exists for the government to consider further policy settings that support the shift to a lower emissions economy.”