The Australian automotive industry will continue to keep a close eye on the NVES and how it changes the future car parc, following the landslide election win for the Labor government on the weekend.
While the LNP Coalition promised to dismantle some parts of it, the returning prime minister Anthony Albanese has remained committed to the milestone policy aimed at reducing the emissions from new vehicles.
Penalties for OEM’s will begin on July 1 this year are based on the overall emissions of a manufacturers fleet
So far the NVES policy has led to a surge in the introduction of new Chinese Ev’s and other vehicles along with massive growth in sales for hybrids and plug-in hybrids.
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Pure battery driven EV’s however have stalled in their growth and have not reached highs of 2024.
The labor government has committed to continue its Fringe Benefits inducement for EVs, a policy backed by the EV council as a way for consumers to purchase the vehicles and save on fuel.
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin also backed the policy as relevant to working Australians hoping to reduce transport costs.
But a similar incentive for plug-in hybrids was dropped at the end of March.
Other commitments from the Labor government that will be of interest to automotive include the $10,000 support incentives for apprentices and the return of the $20,000 instant asset write off.
Motor Trade Association of SA/NT was among the first to welcome the election result with CEO Darrell Jacobs reiterating the government needed to urgently develop a pipeline of future automotive talent to address ongoing skills shortages in the rapidly evolving industry.
“The automotive industry is essential to keep Australia moving,” Jacobs says. Automotive technicians fix the trucks that deliver our food, work on the farm equipment that harvest our crops, and service the utes that tradies need to build new homes.
“Incentivising local employers and apprentices will help increase the attraction and retention of automotive skills.”
In the March budget, the government made a $77.8m commitment to extend the current interim Australian Apprenticeship Incentive System for a further 6 months.
“Australia must prepare for the steep change in automotive technology at our doorstep. Not only in hybrid and electric vehicles, but also autonomous driving technology, increased connectivity and the integration of artificial intelligence.” Jacobs says.
He emphasised the importance of the New Vehicle Efficiency Standard and the need to adapt it to changing circumstances.
“The review scheduled for 2026 is vital to measuring the effectiveness of the NVES and its influence on motorists through to local businesses.”
“The MTA looks forward to working constructively with the Albanese Labor Government over the coming term to drive the automotive industry forward for all Australians.” Mr Jacobs concluded.