National EV plan could lead to cheaper electric cars

The Australian government has pledged to smooth the path for more affordable electric vehicles to be sold in Australia, and promised to review the nation’s new-vehicle fuel-efficiency standards.

Federal climate change minister Chris Bowen confirmed at the National Electric Vehicle Summit in Canberra today that the government will release a discussion paper to develop a National Electric Vehicle Strategy.

The proposed discussion paper will also look at steps to improve Australia’s national fuel-efficiency standards, which Minister Bowen said would help drive down the costs of electric vehicles.

“Apart from Russia, Australia is the only OECD country to not have, or be in the process of developing, fuel-efficiency standards,” he said.

“As the world moves towards more efficient and cleaner vehicles, [Australia] risks becoming even more of a dumping ground for old technology which can’t be sold in other markets.”

Minister Bowen told attendees that Australia is significantly behind when it comes to low-emissions models, with just eight options on sale that cost less than $60,000.

“There are many consumers who would be interested in buying an EV but even if they could access the limited stock available, price sends them to petrol or diesel models,” he said.

“Policy settings are denying Australians real choice of good, affordable, no-emissions cars.”

The announcement has been met with largely unilateral support from the automotive industry.

“This is the kind of courageous intent we have been seeking from our federal government and it is a major step on our journey to delivering low-emission vehicles to Australian customers,” said FCAI Chief Executive Tony Weber.

“We have publicly advocated for a government-mandated CO target for many years. This is a good day.”

Australian Automotive Dealer Association CEO James Voortman said: “The AADA looks forward to contributing to the consultation process on behalf of Australia’s more than 3100 new car dealerships and their 59,000 employees.

“New car dealers support action on lowering vehicle emissions, and consultation with industry is an encouraging sign that Australia will have a fit for purpose, nationally led, electric vehicle strategy.”

Road safety body ANCAP welcomed the announcement but cautioned that the plan should not come at the cost of safety.

“It is clear more needs to be done to encourage the supply of alternative-powered vehicles to help reduce emissions and create a cleaner and sustainable Australia,” said ANCAP chief Carla Hoorweg.  

“With this, we want to remind consumers, fleet buyers, governments and the industry that the maintenance of high levels of safety must also remain a key factor.”

Minister Bowen did not provide any detail around the timing of any changes, saying that timelines for legislating standards will be worked through as part of public consultation. 

As an indication, it has been reported that independent MP of North Sydney, Kylea Tink, has plans to bring a proposal to the next parliamentary sitting week in September.

If passed, the proposal would legislate binding fuel-efficiency standards for new vehicles within the next two years.

The federal government last month made good on its pre-election pledge to abolish import tariffs on EVs under $60,000, alongside changes to fringe benefit tax legislation that make it more affordable for businesses to convert fleets to EVs.

As part of that pledge, the Labor government targeted a figure of 3.8 million EVs on the road by 2030.

For everything you auto know about EVs, listen to carsales' Watts Under the Bonnet: the electric car podcast

Join the conversation at 

our Facebook page

Or email us at 

editor@carsales.com.au