NVES compliance could cost dealers up to $2.1 billion
The Australian Automotive Dealer Association (AADA) is warning that the New Vehicle Efficiency Standard (NVES) could impose up to $2.1 billion in costs on dealerships between 2025 and 2029, depending on how vehicle manufacturers meet their emissions targets.An analysis conducted by the Centre for International Economics (CIE) for the AADA outlines four compliance scenarios, ranging from minimal change and penalties to full regulatory compliance involving significant shifts in vehicle mix and pricing strategies.AADA chief executive James Voortman says the NVES represents a seismic shift for the industry.“This is the biggest regulatory change for the automotive industry in many years, so it’s important that dealers are prepared for the effects of the vehicle efficiency standard,” Voortman said.“Automotive retailers in Australia are resilient and will adapt to this change, but it is still important for them to understand the magnitude of the changes.”According to the report, most compliance costs are likely to be passed from manufacturers onto dealers and customers, either through reduced margins, vehicle price hikes, or both.
