The Australian Government’s announcement of the introduction of a new vehicle fuel standard (NVES) with less than six weeks notice has certainly galvanised our industry. The poorly thought-out plan had not considered the capacity of the OEMs to introduce new zero and low emission vehicles quickly. After more than 40 meetings with government between MTA Queensland, the MTAA, and our interstate counterparts over six weeks, the Federal Government has now laid out its revised draft legislation of the NVES.
With stakeholders from right across the automotive and political spectrums having their say, we believe that the amendments that have been made are sensible for the automotive retail sector and remain ambitious but more achievable – though it is hardly perfect.
Amendments include:
• Re-categorisation of a limited number of 4WD models built on a ladder frame chassis from passenger car to light commercial vehicle.
• Smoothing the emissions trajectory for light commercial vehicles.
• Staging implementation which includes the introduction of earning credits and penalties after 1 July 2025, and a review of the NVES in 2026.
These concessions demonstrate the industry’s ability to convince Government of the very real challenges being experienced internationally in the electrification of transport, and while the emissions trajectory has eased slightly, it will still by no means be a smooth transition here in Australia. The effects of the NVES will reverberate across the automotive landscape and impact every sector, and businesses will have to be prepared.
To support businesses in understanding what an electrified future means for them, MTA Queensland is hosting a free online business transition workshop on Tuesday, 23 April from 7:00am – 9:00am. Following the success of our regional roadshow late last year, the online workshop will enable all members to access the latest data and information and map out their future. Register HERE.
Source: Motor Trader e-Magazine (April 2024)
12 April 2024