Automotive organisations reach agreement on national fleet transition

The professional bodies representing the Australian automotive ecosystem have reached agreement on critical positions and pathways to achieve the transition and electrification of the nation’s motor vehicle fleet. 

The organisations which met for a summit include the Australian Automotive Dealers Association (AADA), the Federal Chamber of Automotive Industries (FCAI), the Motor Trades Association of Australia and five of its state members, the Australian Automotive Aftermarket Association, and the National Automotive Leasing and Salary Packaging Association (NALSPA). 

Representing the sector that make, sell, distribute, provide novated leasing, service, repair, supply aftermarket parts, components, and accessories, dismantle, recycle, and trains automotive professionals, the professional bodies have agreed to more than 25 principles including:

• Embracing the electrification of the Australian motor vehicle fleet.
• Mandating CO2 targets, not Electric Vehicles (EV) targets.
• Supporting the Federal Government in developing a National Zero and Low Emission Vehicle (ZLEV) Electrification Transition Strategy.
• Considering the entire registered vehicle fleet and the needs and requirements of Australians who own and operate them.
• Maintaining the safety, security, service, repair, and efficiency of the legacy Internal Combustion Engine (ICE) fleet.
• Opposing the introduction of bans that limit consumer choice and remove options for meeting car owners’ needs and Australia’s emission reduction targets.
• Ensuring Government targets and milestones are Federally led (or at least nationally consistent), are realistic, supported by facts and sound data, and applied to an Australian context.

The organisations welcomed and congratulated the Albanese Labor Government for its decisive action in fulfilling its Fringe Benefits Tax exemption for Electric Vehicles promise. 

The legislation was in the first batch of 13 Bills introduced to the Parliament and will encourage the uptake of EVs once passed.   

Automotive Organisation leaders shared and discussed comprehensive global and domestic data analysis on the future production and delivery of ZLEVs past 2030 (particularly to the Australian market); impacts and use of targets, milestones, incentives, subsidies, and penalties; jobs and skills; tariffs and taxation; fuel standards and security; legacy fleet management and maintenance; and awareness and education.  

Over the coming weeks, the automotive organisations will engage with stakeholders, governments, and communities and share critical data and information to better balance discussion and partner with the Commonwealth Government to plan the actions necessary to reduce motor vehicle-sourced CO2 and GHG emissions.