* Two-thirds of vehicle suppliers have outperformed their emissions targets in the first reporting period under the New Vehicle Efficiency Standard (NVES)
* The average outperformance for new light passenger vehicles was 21%.
* The Electric Vehicle Council welcomed the results and said they should prompt a review to strengthen future targets to maintain momentum.
18 February 2026
The Electric Vehicle Council (EVC) has welcomed the release of the first performance report under Australia’s New Vehicle Efficiency Standard (NVES) which shows around two-thirds of vehicle suppliers exceeded emissions targets, by an average of 21% for new light passenger vehicles.
EVC Chief Executive Officer, Julie Delvecchio said the results demonstrate the success of the Federal Government’s landmark reform and expose the scaremongering that surrounded its introduction.
“When the NVES was legislated, critics warned of supply shortages, soaring prices and market disruption,” Ms Delvecchio said. “Instead, the first performance report shows strong industry performance, healthy competition and a clear acceleration in cleaner vehicles coming to Australia.
“The data confirms what we said all along - clear, predictable standards drive innovation and investment. They don’t break markets, they modernise them.
“Emissions are coming down, cleaner and more affordable cars are arriving in Australia, choice is expanding and EV sales are growing. That’s exactly the momentum we need to reach five million EVs on our roads by 2035.”
Industry Leadership Recognised
The EVC congratulated leading manufacturers including Tesla and Polestar for their public advocacy of the NVES model and their strong performance under the scheme.
“Tesla and Polestar put a stake in the ground early, arguing that Australia needed a modern efficiency standard to unlock supply and investment,” Ms Delvecchio said. “Their leadership helped shift the national conversation from fear to facts.”
NVES + Electric Car Discount = Real Savings for Drivers
The EVC said the release of today’s performance report also highlights how the NVES, working in unison with the Electric Car Discount (EV FBT exemption), is improving access and affordability for Australian households and fleets.
“With the NVES pulling cleaner cars into Australia and the Electric Car Discount helping more working Australians access them, this policy alignment is delivering real outcomes. It is smart policy translating into real savings for households,” Ms Delvecchio said.
“More supply means more competition. More competition means better choice and downward pressure on running costs. Electric vehicles are already around $3,000 a year cheaper to drive, and this framework is helping to bring upfront prices down compared to petrol and diesel cars.”
Time to Strengthen Targets – Not Slow Down
While welcoming the strong outperformance on emissions from suppliers of internal combustion engine (ICE) vehicles, the EVC said the results should prompt a forward-looking review to strengthen future targets rather than allow excess credits to dampen momentum.
“The fact that many petrol and diesel car manufacturers outperformed their year one NVES targets show the benchmarks were more than achievable,” Ms Delvecchio said.
“It would be counterproductive to now allow large volumes of banked credits to slow the pace of clean vehicle supply in coming years. The initial success of the NVES should give policymakers confidence to steadily strengthen its trajectory and keep Australia aligned with global markets.
“Australia cannot afford to become a dumping ground for higher-emitting vehicles while other countries move faster.”
A Turning Point for Australia’s Vehicle Market
The EVC said the first NVES performance report marks a turning point for Australia’s transport sector.
“For too long, Australians were offered fewer low-emissions models than drivers in Europe, the UK or the United States,” Ms Delvecchio said.
“The NVES is working exactly as intended - rewarding manufacturers who bring cleaner vehicles to Australia and giving consumers more choice.”
“This is proof that smart, coordinated policy can accelerate cleaner transport, lower running costs for families and strengthen Australia’s position in the global automotive market.”
About us:
The Electric Vehicle Council is the peak national body representing the electric vehicle industry in Australia. Representing members from across the value chain of the electric vehicle sector, the EVC is a trusted advisor and advocate to governments and decision makers across Australia. Our mission is to drive investment and awareness to accelerate the electrification of transport, for a more sustainable and prosperous Australia.
Contact details:
Todd Hayward - 0412 205 151