New EV world

16 September 2022

What do we think the state and federal governments are likely to do with our national car fleet?
 
In most Australian jurisdictions, governments communicate their desire to see more drivers take up hybrids and electric vehicles.

The Albanese Government has pronounced optimistic targets around the sale of low and zero emission vehicles (ZLEVs) versus conventional petrol and diesel vehicles – 89 per cent EV sales by 2030.

There are reasons to doubt the modelling, but that’s another story. What really matters is where we are now and how we are going to get there.

For the answers, we need to look at more mature ZLEV markets, where the transition is further down the road.

There is much to be learned from overseas in these transitions, however, there is little in the way of commonality when it comes to incentives, or disincentives, designed to encourage this transition.  

Where there is no commentary at all is in the considerations around existing automotive businesses that will bear a huge financial loss in the transition process.  

Who is doing the sums on the loss of workshops due to ZLEVs needing significantly less maintenance and repair compared to conventional vehicles?  

How about the potential reduction in the value of an automotive business due to less work throughput in an EV world?  And when these businesses disappear, where will motorists go to get their internal combustion vehicles serviced and repaired?

These are critical questions that deserve to be considered in the transition process.  

After all, these businesses and their staff, have kept the Australian vehicle fleet running for 120 years. 

Surely that counts for something.

Words: VACC CEO Geoff Gwilym. As featured in the Herald Sun 16 September 2022.