Hybrids losing rebates ‘a shame’
The Motor Trade Association (MTA) warns the looming changes to the clean car discount (CCD) may do little to affect sales of electric vehicles (EVs) and light commercials, with both categories already facing market challenges.
However, it says sales of hybrids and small cars with internal combustion engines may suffer as they will no longer attract rebates once the government’s new regime is implemented on July 1.
Tony Everett, MTA’s sector manager – dealers, notes it is difficult to forecast exactly how the shake-up of the feebate scheme may affect the national fleet, plus the clean car standard will also have an influence.
“EVs are supply constrained and the CCD changes will do nothing to really change that outcome,” he told Autofile Online.
“An increase in fees on utes and vans might not change outcomes in those sectors, simply because there is no real alternative vehicle that meets the ‘utility’ value required.
“The real questions must now centre on what happens in the market between those extremes – ie the hybrid and small ICE sectors. Without the incentives will hybrids lose some volume, if so that would be a shame.”
Everett, pictured, adds the government’s aim in announcing its overhaul of the CCD on May 2 is to try to balance the ledger of the system that has paid out far more in rebates than it has received in fees.
“We ponder whether the actual plan is as good as it could be. Hybrids, where most of the transitional volume sits, have largely been taken out of the rebate side,” he says.
“At this time where we are still very much in the technology shift phase toward more fuel-efficient vehicles, we are not sure that is the right move.
“Maybe it would have been better to reduce the numbers at the edges – lower the maximum rebates and fees – and flatten the line in the middle.
“The CCD is about sending a message to consumers, and that could have arguably been better achieved.”
He also echoes the concerns of the Motor Industry Association and the Imported Motor Vehicle Industry Association that the amount of notice the government has given on the changes is inadequate.
Everett says having less than two months until the new regime is introduced provides no room for businesses to adjust to the new-look CCD.
“The new vehicle industry is caught by long lead times, so this timing will cause problems at an individual brand level. Some may be better placed than others.
“Over in the used sector, two months is insufficient given the much longer shipping times currently in play.
“Our members operate in both the new and used dealer space. Sudden changes are hard for both sides because it gives them no time to adjust their product mix before the new rules apply.”
