Commonsense Victory for Automotive Efficiency Standard

The automotive industry is celebrating a victory for commonsense with the MTA’s calls for improvements to the new vehicle efficiency standard (NVES) made.

These enhancements were tabled in parliament for the Federal Government’s proposed NVES following concerted advocacy efforts from the Motor Trades Association of Australia (MTAA). Of significance, some of the improvements include:

• Recognition that some utes, vans and 4WDs are more appropriately classified in the light commercial vehicle category

• Adjusting the efficiency limits for trucks, vans and some 4WDs to more achievable settings

• A later staging of the proposed penalty scheme to commence in mid 2025 rather than immediately at the start of 2025

• Increased upper weight limits for both light commercial vehicles and passenger vehicles

From day one, MTAA Chief Executive Officer Matthew Hobbs, in addition to MTAA Chair, Frank Agostino worked constructively with the government to highlight concerns and industry impacts around its original preferred model. Only four days after the Federal Government announced its initial consultation on the NVES, the MTA SA/NT joined a high level delegation in Canberra to speak with three key ministers, as well as senior public servants.

The message was clear.

“Go too hard and you will create an affordability crisis,” said MTA SA/NT CEO, Darrell Jacobs.

“Go too soft and we will not incentivise the entry of new zero and low emission vehicles into the country.”

He said the standard would be critical in balancing the growth of more fuel efficient vehicles, while maintaining affordable vehicle choice for everyday NT motorists.

MTAA CEO Matthew Hobbs urged the government to partner with industry to get the workforce in place to support the EV transition.

“As stakeholders resolve EV supply and range issues in Australia, the next challenge is to implement the required workforce. EVs are cutting edge technology and as such need a highly trained Australian workforce. A good first step is to make more apprentices eligible for the New Energy Apprentices Program,” he said.

The MTAA is concerned not all car companies will make the transition. The huge technology shift brings opportunities but also risks for Australian small businesses and automotive workers who can lose their investment and livelihoods at the whim of international car companies in offshore headquarters.

Australian automotive workers and small businesses need the Albanese government to have their back in this period of change with an Automotive Industry Code of Conduct to protect workers who are at the mercy of multinational companies.

The NVES now faces a critical next stage where its passage will be determined by the Federal Parliament.

Warning

The top five cars sold in the Northern Territory are utes or 4WD.

This prompted a warning from Mr Jacobs: “Whether for work or lifestyle, Territorians love their utes and 4X4s. We must adopt an ambitious but realistic approach in light of vehicle segments without readily available or affordable EV options.

The NVES aims to cap the carbon emissions per kilometre on the average total sales for each car brand.

“In balancing the interests of industry, consumers and the environment, the standard needs to be ambitious, yet achievable,” Jacobs reiterated.

“The NVES will impact affordability and determine how quickly Australia transitions to zero and low emission vehicles.”

Automotive Industry Unites In Canberra

MTAA Chair and MTA SA/NT Chair Frank Agostino joined MTAA Board members, MTAA CEO Matthew Hobbs, MTA SA/NT CEO Darrell Jacobs, MTA Government Policy Managers and CEOs from each state Association in Canberra.

They held a series of high-level meetings with senior Ministers, Senators and politicians.

These included:

• Minister for Climate Change and Energy, Chris Bowen

  Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King

• Minister for Small Business, Julie Collins

• Shadow Minister for Climate Change, Ted O’Brien

• Senator Bridget McKenzie

The delegation also met Chair of the House of Representatives Standing Committee on Climate Change, Energy, Environment and Water, Tony Zappia, alongside his committee colleagues who are examining Australia’s transition to EVs.

The automotive industry’s transition to zero and low-emission vehicles was high on the agenda, alongside automotive franchising reform and skills and training.

It was important that the associations made a powerful and united statement to national decision makers at what is undoubtedly one of the most important moments in Australia’s automotive history.