The first performance results of the New Vehicle Efficiency Standard (NVES) are encouraging but NALSPA warns that without ongoing support, including maintaining the FBT exemption, Australia will fall short on EV uptake and its climate targets.
The NVES Regulator’s 2025 results show that about 12 per cent of vehicles covered by the NVES were electric, with the remaining 88 per cent internal combustion or hybrid.
Two-thirds of suppliers beat their emissions targets and a net surplus of 15.9 million NVES units has been recorded.
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said the data reinforces the importance of maintaining stable demand-side policy settings as the market adjusts.
“The NVES is influencing manufacturer behaviour and improving vehicle efficiency. It’s increasing consumer choice in cleaner cars and lowering emissions on Australian roads. That is a really positive development from the Albanese Government,” Mr Martin said.
“However, with electric vehicles representing around 12 per cent of cars covered by the NVES in 2025, it’s still very early days of the EV transition. This is not yet a self-sustaining market.
“As NVES targets tighten, car manufacturers will need to bring materially more zero-emission vehicles to the Australian market. That is where supply and demand policy must work in lockstep to proactively support and encourage consumer behaviour towards this technology.”
Mr Martin said the Electric Car Discount, delivered primarily through novated leasing, remains Australia’s main demand-side mechanism supporting EV uptake among working Australians.
“The NVES provides supply and the Electric Car Discount encourages demand. Materially changing demand settings at this stage would risk slowing EV adoption and undermining the policy coherence between supply and demand reform," he said.
“The Electric Car Discount is the policy doing the most to put EVs within reach of everyday Australians. Australia has more than 105,000 extra EVs on our roads thanks to the discount, with at least half of all EVs sold today supported by it. Many of the workers taking up the discount say they simply wouldn't have considered making the switch without it.”
NALSPA noted that medium-term emissions targets require a substantial increase in the share of zero-emission vehicles entering the fleet over the next decade.
“The early NVES results show real progress, but they also underline that we are still in the early EV transition so stable and coordinated policy settings remain critical.”
The NVES Regulator’s 2025 results show that about 12 per cent of vehicles covered by the NVES were electric, with the remaining 88 per cent internal combustion or hybrid.
Two-thirds of suppliers beat their emissions targets and a net surplus of 15.9 million NVES units has been recorded.
National Automotive Leasing and Salary Packaging Association (NALSPA) CEO Rohan Martin said the data reinforces the importance of maintaining stable demand-side policy settings as the market adjusts.
“The NVES is influencing manufacturer behaviour and improving vehicle efficiency. It’s increasing consumer choice in cleaner cars and lowering emissions on Australian roads. That is a really positive development from the Albanese Government,” Mr Martin said.
“However, with electric vehicles representing around 12 per cent of cars covered by the NVES in 2025, it’s still very early days of the EV transition. This is not yet a self-sustaining market.
“As NVES targets tighten, car manufacturers will need to bring materially more zero-emission vehicles to the Australian market. That is where supply and demand policy must work in lockstep to proactively support and encourage consumer behaviour towards this technology.”
Mr Martin said the Electric Car Discount, delivered primarily through novated leasing, remains Australia’s main demand-side mechanism supporting EV uptake among working Australians.
“The NVES provides supply and the Electric Car Discount encourages demand. Materially changing demand settings at this stage would risk slowing EV adoption and undermining the policy coherence between supply and demand reform," he said.
“The Electric Car Discount is the policy doing the most to put EVs within reach of everyday Australians. Australia has more than 105,000 extra EVs on our roads thanks to the discount, with at least half of all EVs sold today supported by it. Many of the workers taking up the discount say they simply wouldn't have considered making the switch without it.”
NALSPA noted that medium-term emissions targets require a substantial increase in the share of zero-emission vehicles entering the fleet over the next decade.
“The early NVES results show real progress, but they also underline that we are still in the early EV transition so stable and coordinated policy settings remain critical.”
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