The timing of last month’s fantastic Carmageddon innovation symposium at MTA Queensland could not have been more perfect, as new discussion of zero and low emission vehicles and technologies sweeps across our industry at a national level.
I recently returned from a trip to Canberra, where I met with numerous delegates from Australia’s peak automotive representative bodies as we discussed the coordination of the future of our industry in light of the emerging zero- and low-emission vehicle technology at a one-day summit.
From this summit came a historic outcome. As you are probably aware by now, Australia’s peak National, State and Territory industry bodies – AAAA, AADA, FCAI, NALSPA, and MTAA and each state’s adjoining association – have come to an agreement on a unified approach to developing critical pathways and positions that achieves a considered and practical transition to the electrification of the national motor vehicle fleet.
This is a monumental development, and one that we can all agree was critically necessary to ensuring we stop falling behind the rest of the world when it comes to vehicle and emission technologies.
What does this decision mean for our industry?
Australia has lacked a government-led, nationally consistent approach to embracing the electrification of the industry and reducing CO2 emissions. We know the future is electric, however, no measured steps or pathways currently exist to get us there, and consumers are the ones ultimately left with the financial and choice burdens of this lack of structure and targets.
This harmonisation between parties will utilise our combined experience, data, and networks to present thoroughly laid out plans and targets to government to guide the installation of a nationally consistent Zero and Low Emission Electrification Transition Strategy that embraces electrification without deterring our industry in the short term.
While acknowledging our future, we cannot underestimate the importance of hybrid and ICE vehicles – of which there is approximately 20 million in the Australian fleet – in supporting the transition in the short and medium term. It is unfeasible to expect these vehicles to disappear overnight and be replaced by electric vehicles. We must ensure these vehicles are supported during the transition to avoid the economic and social ramifications from simplistic measures like banning the purchase of new ICE vehicles by 2035.
This is not to say we should remain open to importing any and every outdated ICE vehicle. We support government imposed emission targets for new vehicles to ensure only the most fuel-efficient vehicles, compatible with the most advanced fuel options, are introduced during the transition. This is where industry supports government leadership to introduce CO2 regulations on imported vehicles, in line with the rest of the world, and help Australia meet its emission targets. We all have a role to play.
Introducing bans , as we have recently seen in the ACT where new ICE vehicle purchases will be banned from 2035, is not the way forward. All this serves to achieve is removing consumer choice and ensuring people hang on to their ICE vehicles until EVs are more affordable. We need people to keep maintaining their vehicles and not just keeping them hidden away.
There has been some conjecture in a mainstream newspaper that the industry is trying to hold back the tide. That is incorrect. We support electrification and support an achievable plan rather than an ideological one. Stay tuned for more news in the coming months as we continue discussions about putting key actions in place with key stakeholders and government agencies. However, for now, I can say I am incredibly excited by the potential this initiative proposes for the future of our industry and the many businesses who operate across the retail, service, and repair sectors!
12 August 2022