Emissions targets reached
The first release of results for the New Vehicle Efficiency Standard (NVES) by Australia’s federal government shows the industry there has met its targets set for 2025.
However, significant challenges lie ahead as the goals become more stringent through to 2029, reports the Federal Chamber of Automotive Industries (FCAI).
The results, released on February 18, outline the interim emissions value for each car maker along with details on the number of units – or credits – issued under the scheme last year.
Tony Weber, pictured, the FCAI’s chief executive, says the results showed marques responded quickly to the task of meeting the first year of emissions reduction targets but a substantial reduction in targets each year to 2029 will present major issues.
“An increase in the range of zero and low-emissions vehicles available in Australia market have supported the achievement of the first-year targets,” he adds. “To support the reduction objectives, car makers have increased the range of EVs with more than 100 models available to consumers.
“However, despite this increase in supply, EVs represented just 8.3 per cent of new-vehicle sales in 2025, which was only a 1.1 percentage point increase on 2023.
“Sustaining compliance as targets tighten will require materially stronger uptake of EVs than current market trends indicate. This is a major concern because an increase in EVs on Australian roads is critical to achieving the stringent government targets, which reduce each year to 2029.”
The NVES target for passenger vehicles in 2026 is 17 per cent lower than 2025 and 14 per cent lower for light commercials. By 2029, the target for cars further decreases by 59 per cent compared to 2025 and is 48 per cent lower for light-commercial vehicles.
The rate of improvement required to avoid NVES penalties presents a big challenge and any additional costs generated by the scheme will likely be passed on to buyers of new cars.
Weber says: “The increase in the supply of zero and low-emissions vehicles currently being undertaken by car makers is the best action they can take to meet the NVES targets.
“However, the key to long-term success of the NVES relies on increased EV demand. At the moment, demand for EVs remains subdued and this is a major concern and disappointment for car makers. The FCAI is keen to see the government consider policy settings that support demand for EVs and low-emission vehicles to assist the achievement of the NVES.”
