Call to stimulate EV uptake

The new-vehicle industry in Australia is calling on the federal government to provide more reasons for consumers to make the shift to EVs after a new scheme swung into action this month.

The credit and debit regime of the New Vehicle Efficiency Standard (NVES) started on July 1, marking a major regulatory shift for the automotive industry across the ditch.

Similar to New Zealand’s clean car standard, it sets carbon dioxide (CO2) targets for light vehicles being registered for the first time in the country in an effort to drive down emissions from the fleet.

The Federal Chamber of Automotive Industries (FCAI) says it means carmakers are now being held accountable for the emissions profile of the vehicles they supply to the market, with credits awarded for low-emitters and debits applied where carbon CO2 goals are exceeded.

Tony Weber, chief executive, says the automotive industry has worked hard to meet the requirements of the scheme, making significant investments in product supply, compliance systems and market readiness.

“There are now more than 100 EV models and more than 50 plug-in hybrids available to Australian consumers,” he adds.

“But supply is only part of the equation. Demand remains constrained by a lack of affordability, infrastructure and consumer confidence, factors that the government must address if the NVES is to succeed.”

EVs currently account for seven per cent of new vehicle sales in Australia. Weber says this is well below the level needed to meet the objectives of the NVES, which is driven by targets that become tougher every year until 2029.

“The lack of public recharging and total cost of EV ownership remain major hurdles, especially as electricity prices skyrocket around the country.

“What is needed now is a serious, co-ordinated effort to make the transition viable for all Australians, not just early adopters. To date, the government has not put in that effort.”