A supplied image obtained on Wednesday, August 30, 2023, of Toyota's prototype electric ute, the HiLux BEV, at Melbourne Showgrounds. (AAP Image/Jennifer Dudley-Nicholson) NO ARCHIVING, EDITORIAL USE ONLY
Governments cannot expect Australian motorists to adopt electric vehicles in greater numbers without ongoing tax concessions or financial assistance, an inquiry has been told.
A scarcity of electric utes and large SUVs was also preventing more regional motorists from making the transition, experts said, and the removal of hybrid vehicle tax concessions would give them little option but to buy diesel vehicles.
Representatives from the automotive and renewable energy industries appeared before the Transition to Electric Vehicles inquiry in Canberra on Friday in its seventh sitting.
Federal Chamber of Automotive Industries chief executive Tony Weber told MPs electric cars made up 7.6 per cent of all new vehicle sales in 2024, but represented only 3.1 per cent of large SUVs and .01 per cent of utes.
Many large vehicle types popular with motorists were simply not yet available as electric vehicles, he said.
“Clearly, we don’t have in some categories – especially 4×4 technology in larger vehicles – we don’t have the battery capacity at this point in time,” he said.
“We haven’t got to a stage in which we can have a battery that’s light enough, that gives you the range and the energy density to drive larger 4×4 vehicles.”
Ute and SUV drivers looking to cut transport emissions were instead opting for plug-in hybrid vehicles, he said, which had received a fringe benefits tax cut in 2022.
But Mr Weber said those motorists might return to high-polluting vehicles next April when the concession expired.
“People who need them, who live in regional rural areas who need (large vehicles) for their work, won’t be allowed to access that FBT concession any more,” he said.
“There is no substitute to move those people to an EV… all they can do is go back to diesel.”
Australian Automotive Dealer Association chief executive James Voortman said some drivers would struggle to go electric without the launch of a more “affordable or capable” battery-powered ute.
He said Australia’s luxury car tax, which applied to vehicles priced above $91,387, had prevented the import of large EVs to Australia and most consumers were no longer being offered subsidies to offset the higher price of new EV purchases.
“With the exception of maybe some of the incentives in Queensland that have recently been taken off, we just don’t have the same universally accessible incentive regime that (other countries) have had,” he said.
“I would be surprised if we keep growing faster than other countries under the existing system.”
Nexa Advisory chief executive Stephanie Bashir said the removal of EV subsidies in Victoria, NSW, South Australia and Queensland had slowed their adoption in Australia.
She said the federal government should consider ways to financially support their take-up and to help consumers invest in low-emission technology, as they did with solar panels.
“At the moment they are still not at a price point that allows the average person to make that investment decision into electric vehicles,” she said.
“That has been one of the key reasons why there’s been a plateau.”
Ms Bashir said EVs would need to represent 50 per cent of all new car sales by 2030 for Australia to reach net zero by 2050.
Sales of new electric vehicles fell to 5.99 per cent of new vehicle purchases in August, according to figures from the FCAI and Electric Vehicle Council, down by 15 per cent compared to August last year.
AAP
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Why is it that you always want it to be subsidiaries from the Australian tax payer.
If it was any good people would buy it
ICE vehicles are subsidised by the health budget.
And the Current account deficit.
Fossil fuels get orders of magnitude more subsidies from Australian Tax Payers. Give a little bit of subsidies upfront to incentivise take-up of EVs, and once there is critical mass we can save billions on ransom *ahem* subsidies not paid to oil refineries very year.
Yes at this stage EV works better in small to med size passenger transport. We just need more that are cheaper and take up would be better if they were from existing car brands that people tend to be loyal to. If brands we are all familiar with got fully behind EV with great product that was affordable things would be very different.
And then there is huge scope in the commercial transport sector: buses, delivery vans, taxis, council trucks. Supportive taxation policy in this area is justified and needed. And this sector lends itself to Australian value add solutions.
The BYD Shark will be the Cat amongst the expensive to run and maintain pigeons.
Also comes with V2L. Massively useful for tradies!
Most rural drivers in diesel vehicles aren't exactly rushing out to replace them given the average household income in those areas. There needs to be massive penalties for holding on to 10 - 20 year old vehicles that have very little emissions controls on them. Offering an EV equivalent and asking $55K plus for them wont cut it, what about all the accessories attached to them, who is going to pay that to get a like for like, the $55K is more like $85K. There needs to be massive trade ins for them, like the compulsory gun buy back scheme and have them destroyed if they can't be retro fited with better emission control system at a time when a suitable EV is available.
What we need is for Toyota to get serious about their EV ute as the rural community sees Toyota as the only brand to buy, they have been conditioned that way through experience and perceptions.
Add a solar & charger package with that ute pictured in this article on sale around $45K after subsidies, tax write offs or whatever. When you can do that you will get traction.
I don't think massive penalties will win hearts and minds. Diesels already need a ton of maintenance. That and the fuel bill is already a fair penalty. Just incentivise BEVs and PHEVs.
Electric vehicles work best as tiny vehicles, namely the ubiquitous electric scooters that zip around urban and city streets in disregard of law and safety. If you want large fossil vehicles off the road, make it easy and safe to use such small vehicles for most short trips.
Really concerned that if we encourage the current batch of USA-large electric utes (F150, Cybertruck etc) in Australia, we will pay for it forever in space, road damage, pedestrian deaths etc. How about we encourage manufacture of Australia-large electric utes (Hilux, Ranger etc) and make it easier to buy those once they're available? At least an unmodified Hilux will almost fit in a parking space, and would hit an adult pedestrian in the hip, compared to the chest-height front grill of a Ram.
Enter stage-left the BYD Shark.
36Kwh battery to power the majority of short trips supported by a petrol motor for longer.
“At the moment they are still not at a price point that allows the average person to make that investment decision into electric vehicles,” - I keep seeing comments like these being made but wonder what that price point actually is?
Agreed, plenty of $100 K diesels being driven around in the regional areas, but $100 K electric utes are unaffordable.
Yes, it is frustrating. There's the F150 lightning and the LDV which are expensive.
There are the Rivians and Cybertrucks overseas, which the New Vehicle Efficient Scheme should help to make available in Aus.
Meanwhile companies selling large numbers of 4x4s like Toyota and Mitsubishi dilly dally on BEVs.
Simple. For anyone with an ABN that works in construction, trades etc., give significant tax credit concessions, rebates and other incentives to buyers of BEV and PHEV Utes, a small incentive for HEVs, and none for diesel.