The Australian automotive industry will continue to keep a close eye on the NVES and how it changes the future car parc, along with pressure on other key issues affecting repairers following Labor’s landslide win.
While the coalition promised to dismantle some parts of the NVES, 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, 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.
Training needed
Motoring bodies like the VACC’s CEO Peter Jones says the transition meant automotive businesses including repairers needed significant support to make it work.
“As manufacturers bring more electric and hybrid vehicles to our shores, it is essential that adequate support mechanisms are established for the entire automotive ecosystem,” Jones says.
“This necessitates substantial investment in training, equipment, and infrastructure—particularly for independent workshops and regional businesses that may lack resources for rapid adaptation.”
The Dealership and Repairer Initiative for Vehicle Electrification Nationally (DRIVEN) program is one such government program but Jones stressed the critical importance of comprehensive skills development across the industry.
“The investment in TAFE funding and apprenticeship support must be delivered promptly and at sufficient scale for our sector, which already faces acute skills shortages,” said Mr Jones. “We require thousands of new technicians trained in emerging technologies, particularly in electric vehicle systems, over the next decade. Without this workforce development, many businesses will face operational challenges.”
Code mandate
The MTA NSW has specifically highlighted the Code of Conduct for repairers as a priority for the incoming government to support the vital industry.
Equally pressing is the need to mandate the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct to create a fairer operating environment for small and independent repairers who are often at a disadvantage when negotiating with large insurers, Stavros Yallouridis, CEO of MTA NSW said in a statement.
“We need strong, targeted policies that tackle skills shortages, encourage apprenticeships, and support independent businesses,” Yallouridis says.
“The automotive sector is facing critical challenges that require immediate attention. These include a growing shortage of skilled workers, the need for more robust training pathways, and stronger incentives for employers to support apprentices.”
It also wants tax reform addressed, including removing the luxury car tax and establish a fair and balanced road user charging system that reflects today’s vehicle technologies and usage patterns.
The MTA NSW also wants the new government to establish a national End-of-Life Vehicle (ELV) program to help transition the industry toward a circular economy and ensure responsible, environmentally sound vehicle disposal and recycling.
New Sales slow
These calls come amidst a trend where pure battery driven EV’s however have stalled in their sales growth and have not reached the highs of 2024.
The Labor government has committed to continue its Fringe Benefits inducement for EVs, a policy backed by multiple advocacy bodies as a way for consumers to purchase the vehicles and save on fuel costs.
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.
“With cost-of-living pressures continuing to rise, working Australians are increasingly recognising the vital role that salary packaging and novated leasing services can have in helping to ease their financial strain,” martin says. “NALSPA welcomes the opportunity to continue to work with the new government to ensure these practical tools are best leveraged to help working Australians and their families.”
Electric Vehicle Council CEO Julie Delvecchio said the sector looks forward to continuing its strong collaboration to shift the car parc to a low emissions future.
“This decisive re-election validates the Albanese Government’s leadership in working to reduce emissions and the cost-of-living by making it more affordable and easier for Australians to buy electric vehicles,” Delvecchio says.
“Australia’s vehicle efficiency standard and the electric car discount will continue delivering more choice in cheaper-to-run, cleaner cars. We encourage the Government to continue supporting Australians to cut their cost of living by fully implementing the standard and continue supporting the FBT exemption for battery electric cars.
“Australia’s vehicle efficiency standard and the electric car discount will continue delivering more choice in cheaper-to-run, cleaner cars. We encourage the Government to continue supporting Australians to cut their cost of living by fully implementing the standard and continue supporting the FBT exemption for battery electric cars.”
Other pledges
But a similar incentive for Plug-in hybrids was dropped at the end of March and FCAI figures show they have already halved in sales in April
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.