Starting the engines on Australia’s electric vehicle policy

28 September 2023

The Victorian Automotive Chamber of Commerce (VACC) is encouraged by the release of a national discussion paper National Electric Vehicle Strategy-Consultation Paper on Australia’s policy to support transition to a cleaner transport fleet.  

The paper reflects a global shift in vehicle policy and aligns with a broader ambition to reduce Australia’s vehicle and other emissions to net zero by 2050.

Australian government goals outlined in the discussion paper, while aspirational, are achievable with the right incentives and policy setting.  

International experience shows highly incentivised car markets, designed to encourage drivers to buy reduced or zero polluting cars, do far better than simply waiting for price parity on electric vehicles.

“Examining how other countries have transitioned to cleaner vehicle fleets clearly shows Australia can avoid many of the pitfalls already experienced in other countries,” said VACC CEO, Geoff Gwilym.

“While countries, such as Norway and Sweden, have significant hydro capabilities, Australia has the equivalent in solar and wind capability, which must be harnessed to meet our transitioning vehicle fleet requirements.”

VACC welcomes the opportunity to provide input into the discussion paper. This will include a call to government to consider the transitional requirements of the existing automotive industry that has around 75,000 businesses and employs 400,000 people.  

“Many of these are family businesses who have provided services to their local communities for decades. We can’t afford to lose these valuable resources,” said Mr Gwilym.

“The existing industry must be integral to any transition plans. We have hundreds of workers and jobs at stake and it can’t be taken for granted all parts of the industry will just transition.”

Affordability and an adequate supply of new zero and low emission vehicles to Australia will also be raised, given Australia no longer manufactures its own passenger cars.  

“Manufacturers deliver vehicles to regions where they are likely to sell, so government policy has to build sufficient incentive into Australia’s car market to make it a destination of choice for vehicle manufacturers,” said Mr Gwilym.

“Lower income earners need to be part of this transition process. We can’t have the creation of a great car divide that excludes people who, through no fault of their own, don’t have the capacity to be part of the fleet transition.”

Most importantly, in order to achieve the government’s objectives, it must work with the automotive aftermarket, which will be most affected by the transition. To date, it has been overlooked by government when discussing EV policy and this simply must not continue. This sector will be relied upon to sell, service, repair and dismantle ZLEVs over the coming years and must be part of the conversation and strategic planning.