Industry welcomes federal Electric Car Discount

The Australian government’s Electric Car Discount Bill has largely been welcomed by the local automotive industry, including the amendment for a sunset clause for the support of plug-in hybrid (PHEV) vehicles.

As we reported last week, the new Bill follows the Labor government’s recently announced Electric Vehicle Strategy and will see electric vehicles and PHEVs priced under the $84,916 luxury car tax threshold exempted from the fringe benefits tax (FBT) and five per cent import tariff, however, this will only apply to the latter until April 1, 2025.

Mitsubishi Motors Australia Limited (MMAL) has long been an advocate for PHEV technology and its positioning as something of a halfway house between series hybrids – such as those offered exclusively to date by Toyota – and full battery-electric vehicles, hence CEO Shaun Westcott’s praise of the electric car discount.

“The inclusion of PHEVs in the bill from the beginning is a strong signal from the federal government that plug-in hybrid EVs have a role to play in reducing emissions in the transport sector and incentivising affordable EVs in Australia, which can meet Australian’s needs,” he told carsales.

“Through to 2025 we believe there is a great opportunity for fleet customers to take advantage of our plug-in hybrid EVs and their ability to reduce transport emissions, while helping to normalise EV charging behaviour, and take advantage of the FBT exemptions over the life of the lease.

“MMAL believes that EVs are the future, but the current Australian infrastructure environment needs to be further developed to support higher uptake of EVs.

“Our PHEVs remain the right technology for right now in this country, removing any range or infrastructure anxieties, while still allowing the vast majority of commuters to cover their daily drive in pure EV mode.”

Volkswagen Group Australia (VGA) has also voiced its support of the discount and continues to be one of the market’s most outspoken partisans of battery-electric powertrains – despite that fact that, like Toyota, it’s yet to sell one in Australia – but said the conversation should now be turning to the establishment of binding emissions targets.

In a statement issued to carsales, VGA corporate communications general manager Paul Pottinger said the Group was “heartened” by the “tangible progress” made with and by the discount Bill.

“In order for our brands to secure adequate production, it remains now to implement binding emissions targets for auto importers and to address the matter of tariffs,” he said.

“The government has spoken to its intention in these regards.”

VGA’s calls for more emission-specific action is in line with the extensively reported views of the Federal Chamber of Automotive Industries (FCAI) which has been campaigning for a national standard since the start of the year.

Speaking on behalf of numerous manufacturers, FCAI CEO Tony Weber welcomed the Electric Car Discount and described it as an important step in the development of a national EV strategy, as part of which some factions are already calling for a ban on petrol and diesel vehicles by 2035 in line with Europe and the ACT.

“Car makers support financial incentives as part of a wider range of policy measures,” he said.

“Ideally the new year will see action in the area of a Federally mandated emissions target for the light vehicle sector.

“This is a positive move, but more action is required.”

The increased action Weber is calling for is the inclusion of a fuel-efficiency standard, a mix of powertrain technologies, infrastructure investment and behaviour change initiatives within the national EV strategy, with a focus on the availability and affordability of low-emissions vehicles, rather than just cheaper EVs.

Low-emission vehicles encompass all forms of electrification as well as cleaner traditional internal combustion powertrains.

The FCAI has stated it will “not support any policy that puts fuel efficient vehicles using a range of technologies out of reach of every-day Australians”, especially those living on the outer reaches of major centres or rurally.

“Independent international research indicates there is no capacity to completely replace the current market with battery electric vehicles in the near future,” Weber said, referencing the “unique nature” of the Australian new-vehicle market.

“A sign of success will be when there are as many EVs in Cranbourne as there are in Cottesloe and as many in Blacktown as there are in Brighton.”

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