The Federal Government’s National Electric Vehicle Strategy release has generally brought a positive reaction from the automotive industry.
That includes the Australian Automotive Dealer Association (AADA) which welcomes the commitment to develop fuel efficiency standards for light vehicles, adding it will constructively participate in consultations on the standards’ design.
“We believe the transition to cleaner and greener passenger cars can provide major benefits for consumers and businesses in the automotive supply chain,” says AADA chief executive James Voortman, adding that an appropriately structured fuel efficiency standard is an important element of this journey.
He sees the devil in the detail though.
“The automotive industry is in fierce agreement that we need such a standard, but the detail that emerges out of the consultation will be critical,” says Voortman.
“If we go too hard too fast we risk undermining vehicle affordability and choice.”
Voortman says the standard also needs to be considered alongside other EV policy initiatives, perhaps including purchase incentives.
He says other strategy initiatives to encourage EV uptake such as improving systems and charging infrastructure, and research to inform supporting an EV circular economy, are also welcome.
“Australia’s automotive industry has been calling for a Federally led standard for many years and introduced its own voluntary scheme in 2020 in an effort to initiate some action,” says Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber.
“The questions and topics raised in the consultation paper highlight the complexity of the issue and demonstrates the Government has done its homework to ensure any future emissions standard is not a simplistic copy of an overseas standard but instead suited to Australia.”
Weber says the FCAI and its members will work alongside Federal, State and Territory Governments to progress the development of a fuel efficiency standard that reduces carbon emissions and encourages access to the world’s best zero and low emissions vehicle technology.
The EV strategy also welcomed by the Electric Vehicle Council (EVC) which echoes the Climate Council’s view that fuel standards must be swift and bold.
“There’s a long road ahead for Australia to catch up with the rest of the world on electric vehicle policy, but this strategy can accelerate progress,” says EVC chief executive Behyad Jafari.
“It’s a relief that an Australian Government has finally committed to fuel efficiency standards, which have been operational in the US and Europe for decades.
“But with those jurisdictions now leaping forward in terms of ambition Australia must bring in strong standards that keep pace with the modern world,” says Jafari, adding it will save motorists hundreds of dollars in fuel annually, provide a choice of more affordable EVs, and could see a local EV value chain develop.
The Australian Automobile Association (AAA) says it looks forward to consultations over the design of the standard to ensure Australian motorists, including the 8.9 million members of its affiliated motoring clubs, can access the safest and cleanest light vehicles available on the global market at least cost.
The Government must also address the fact that the shift to EVs in coming years will reduce the revenue it collects as fuel excise, cutting funding available for road investment, the AAA adds.
“It is critical that the transition to low and zero emissions technology includes a serious plan to secure solid funding streams for road construction and maintenance into the future,” says AAA managing director Michael Bradley.
“The AAA believes electric and other zero emission vehicles should be brought into the tax system as soon as possible, but initially at a discounted rate to avoid disincentivising take-up.’’
It backed a fuel efficiency standard in its submission to last year’s EV Strategy discussion paper, calling for a sensible, market-based approach to reduce carbon emissions while prioritising consumer choice and affordability.
The AAA asks political parties to work together to create a transition blueprint capable of lasting across multiple governments and parliamentary terms.
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