The MTA Group is calling on the Federal Government to maintain the Electric Car Discount (ECD) in its current form as fuel prices surge to record levels amid ongoing geopolitical instability.
The automotive industry body, which represents more than 3150 member businesses and 28,000 workers across NSW and the ACT, says this is the wrong time to remove the only consumer incentive that makes switching away from volatile fuel costs financially viable for everyday Australians.
The call follows the group’s formal submission to the statutory review of the ECD and aligns with the Electric Vehicle Council’s position to protect and strengthen the discount.
“With no clear resolution to the conflict in the Middle East and oil prices continuing to climb, Australian families are feeling the pressure at the bowser like never before,” said Collin Jennings, Head of Government Relations at the MTA Group.
“The families who are the most energy secure right now are those who have already made the switch to electric. This is exactly the moment to be making EVs more accessible, not less.”
Consumer interest in electric vehicles has increased markedly since the fuel crisis began, with dealerships across Australia reporting higher demand as consumers seek to mitigate their exposure to volatile petrol prices.
More than 114,000 Australians have switched to electric vehicles under the scheme, with real savings on running costs flowing to household budgets as petrol costs rise.
EV market share has grown from 2% to over 13% since the ECD’s introduction, delivering exactly what it was designed to achieve, according to Jennings.
“This is not the time to pull back,” he said.
Policy framework under pressure
The ECD works alongside the New Vehicle Efficiency Standard (NVES) to form a coherent policy framework for decarbonising Australia’s light vehicle fleet. While the NVES creates supply-side pressure on manufacturers to bring cleaner vehicles to market, the ECD stimulates consumer demand.
“No country has successfully transitioned its vehicle fleet through supply-side measures alone,” Jennings said. “The NVES and the ECD were designed to work in tandem. Removing the ECD now, just as consumers are turning to EVs in response to the fuel crisis, would be undermining the transition at the very moment it matters most.”
For MTA Group members, continued EV uptake creates the investment case for automotive workshops and crash repairers to acquire specialist equipment, training and certification required to service electrified vehicles.
As a leading training provider, MTA Group sees firsthand the workforce development challenges in the transition, with stable policy needed to give businesses confidence to invest and train the workforce that a growing electrified fleet will require.
“There is no point putting more EVs on the road if there is no one to fix them,” Jennings said. “Our members are making real investments in equipment and training. They need confidence that the policy will hold.”
The MTA Group is urging the Government to rule out means testing, which would be unworkable and hit lower-income earners hardest. If cost pressures require adjustment, a modest reduction in the vehicle price cap is preferable to structural changes to the discount.
Any changes should wait until road user charging is in place, so Australians are not penalised twice for choosing electric vehicles.
“Timing matters,” Jennings said. “In the midst of a fuel crisis, with Australians actively seeking alternatives to petrol-dependent vehicles, now is not the time to remove one of the most effective tools we have for accelerating the shift. The Government must hold the line.”
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