What do we think the state and national governments will likely do with Australia’s car fleet?
In most national jurisdictions, governments have communicated their desire to see more drivers take up hybrids and electric vehicles and, sometimes, have pronounced very optimistic targets around the sale of low and zero emission vehicles versus conventional petrol and diesel vehicles.
In some cases, this is wishful thinking on the part of Australian policy-makers.
How countries overseas – particularly in Europe – have handled these transitions can teach us much.
However, there is little in the way of commonality with global incentives, or disincentives, designed to encourage this transition.
It seems each country goes its own way.
There is an elephant in the room, however.
Where there is no commentary at all is the consideration given to existing automotive businesses that will bear a huge financial loss in the transition process.
Who is doing the sums on the loss workshops will experience because to electric vehicles needing significantly less maintenance and repair compared to conventional vehicles?
How about the potential reduction in the value of an auto business because to less work throughput in an electrified world?
These are critical questions that deserve consideration in the transition process.
After all, these businesses and their staff have kept the Australian vehicle fleet running for 120 years.
Words: VACC CEO, Geoff Gwilym. As published in the Herald Sun 22 December 2023