The credit and debit regime of the New Vehicle Efficiency Standard (NVES) begins tomorrow, marking a major regulatory shift as one of the biggest changes to the Australian automotive industry in a century.
From tomorrow, vehicle manufacturers will be held accountable for the emissions profile of the vehicles they supply to the market, with credits awarded for low emission vehicles and debits applied where carbon dioxide targets are exceeded.
FCAI chief executive Tony Weber said the automotive industry had worked hard to meet the requirements of the scheme, making significant investments in product supply, compliance systems and market readiness.
“There are now more than 100 electric vehicle (EV) models and more than 50 plug-in hybrids available to Australian consumers,” Mr Weber said.
“But supply is only part of the equation. Demand remains constrained by a lack of affordability, infrastructure and consumer confidence, factors that the Government must address if the NVES is to succeed.”
Despite the broad range of low and zero-emission vehicles on offer, EVs account for just 7 per cent of new vehicle sales, well below earlier predictions.
“This is well below the level needed to meet the NVES objective, which is driven by aggressive targets that become vastly more stringent every year until 2029,” Mr Weber said.
“The lack of public recharging and total cost of EV ownership remain major hurdles, especially as electricity prices skyrocket around the country.
“What is needed now is a serious, coordinated effort to make the transition viable for all Australians, not just early adopters. To date, the Government has not put in that effort.”