The leading chamber for the automotive industries wants a more sustained and diverse approach to transitioning the Australian car parc to zero emissions, if the government aims to win public confidence in the changes.
The Federal Chamber of Automotive Industries has advocated for a mix of automotive drivetrain technology in the decade to come, changes to vehicle and road taxes and more infrastructure development as the key steps toward a zero emissions automotive sector.
In its submission to the federal government’s Transport and Infrastructure Net Zero Consultation Roadmap, it has argued for a wider range of energy and fuel sources than an exclusively EV future fleet.
It also wants clarity on a road user charging system that could replace current fuel excise along with better charging infrastructure for EVs.
It is the third major body in the automotive sector to push the government to do more to win the public’s confidence in the transition and ensure its policy and funding looks at the complete ownership experience beyond purchasing.
The MTAA was recently in Canberra pushing its election wishlist, a list of ten points that it argues will be critical in ensuring the NVES has longevity and sustainability in the automotive sector.
READ MORE: Skills, EV support and a mandatory code; MTAA’s call to arms
The MTAs are also pushing for tax reform, the enforcement of the MVIRI Code of Conduct and a lot more support for upskilling and training to meet the transition.
Last month, the AAAA also promoted the aftermarket experience, arguing that without adequate repairers, consumers would lose confidence in new technology like EVs that was not supported or difficult to have repaired.
READ MORE: Government must support aftermarket to ensure EV transition ‘success’
Work to be done
FCAI Chief Executive Tony Weber says the NVES policy is only a starting point and the government must win over the buying public.
“Policy that drives the supply of vehicles will struggle unless consumers become a part of the solution to achieve net zero emissions through effective and efficient levels of support and encouragement,” Mr Weber says.
“The introduction of the New Vehicle Efficiency Standard provides industry with certainty regarding the expectations and ambitious targets of the Government,” Mr Weber says. “However, this is not a ‘set and forget’ direction. There is a need to continue to focus on the broader enabling environment, and how can we reduce emissions in the existing fleet while the transition occurs.
“Scrapping the Luxury Car Tax, which is a tax on new vehicle technology, and extending the Fringe-Benefits Tax exemption for Plug-In Hybrid could support EV adoption and are important measures to consider.
“An efficient and equitable road user charging framework can be considered as a replacement for a range of outdated and inefficient tax measures, while maintaining sustainable funding for roads and transport infrastructure into the future.”
Shortfall in chargers
He says the development of public and private electric vehicle recharging infrastructure remains a major priority for consumers and while there has been a good start
“There are big challenges ahead, particularly the roll out of infrastructure to regional and rural Australia. This is a complex piece of work that must be done in parallel with the capability and capacity of the electricity distribution network.”
While electrification is seen as the most obvious method of reducing vehicle emissions, FCAI believes says that all relevant technologies must be considered as offering solutions to both new and existing vehicles in the Australian fleet.
Time to transition
“Australia is a nation with more than 21 million registered vehicles which will take time to transition. It may be possible to leverage Low Carbon Liquid Fuel solutions across the transport sector, and we should be considering policy outcomes that encourage production and supply opportunities.
“The key message is that multiple pathways will be required during the next decade and beyond to achieve the net zero emissions objectives of governments and industry. With this in mind, FCAI and its members will continue to engage constructively with all levels of government and industry partners to achieve a low emissions future while providing the best outcomes for Australian consumers.”
A full version of the FCAI submission can be found here.
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