Australians will be locked out of cleaner, cheaper-to-run cars—and miss out on up to $3,000 a year in savings—if penalties are scrapped for car manufacturers that fail to meet pollution reduction targets under the New Vehicle Efficiency Standard (NVES).
Without penalties, manufacturers have no incentive to bring the most modern—and cost-saving—vehicles to our shores. It will mean fewer affordable EVs and efficient petrol/hybrid cars, less price competition, and less options for Australians to access those savings.
Reports today indicate that fines could be abolished for car companies that bring in expensive and polluting cars into Australia. This will hurt millions of motorists and only benefit some manufacturers who want to sell cars that are more expensive to run and damage our health.
The NVES, which only began this year, encourages manufacturers to bring a wider range of EVs and fuel-efficient petrol and diesel cars to Australian roads, saving Australians up to $3,000 per year in fuel and maintenance costs by driving an EV.
Importantly, while the NVES credit and penalty scheme will begin mid-year, penalties for manufacturers that bring in expensive-to-run, polluting cars are not payable until 2028 - and the regulator can only issue fines that are 50 per cent of the maximum penalty.
EVC chief executive Julie Delvecchio said: “To remove fines from the NVES is a bit like having a speed limit with the speed cameras turned off.
“The NVES doesn’t work without a carrot and stick approach. The ability to earn credits for bringing in fuel-efficient cars is an incentive for car manufacturers to deliver modern, cheaper-to-run models to Australians, while fines ensure compliance with standards.
"The NVES is working - it is already bringing more choice in cheaper-to-run cars, lower costs at the fuel pump no matter whether it's petrol, diesel or electric, and cleaner air right across the country.
“Removing penalties in the efficiency standard will mean one thing: Australians will be locked out of the savings that come from switching to an EV - up to $3,000 a year that could be in their pocket - simply because the most fuel-efficient vehicles will never reach our shores.
“No penalties means fewer fuel-efficient vehicles and higher running costs. While it's still early days, the NVES is already proving essential by helping Australians save up to $3,000 per year when driving an EV, expanding their choices and driving down prices for EVs and fuel-efficient cars.
“There is zero evidence that the NVES is driving up the cost of new cars. In fact it is making owning and driving a new car more affordable for Australians as their vehicles will guzzle less petrol and diesel, and as more choice drives lower prices.
“A weaker NVES threatens the $114 billion in fuel and maintenance savings and health benefits for Australians, only for the benefit of some manufacturers. To water down the NVES will reverse the progress that Australia has made and will put us back in line with the likes of Russia who doesn’t have a fuel efficiency standard.
“Without a strong fuel efficiency standard, Australia risks once again becoming the world's dumping ground for fuel-guzzling, polluting vehicles. Some manufacturers may prefer a toothless policy, but Australians would pay the price for such short-sighted changes.
“This is a cost-of-living election and NVES is absolutely about improving the cost of living for Australians as it continues to bring in more cheaper-to-run cars, reducing costs at the bowser. Maintaining a robust NVES is vital if we want to make driving more affordable and the air that we all breathe cleaner.”
Media contact: Sofie Wainwright 0403 920 301