Introduction: As the Australian, and global, economy journeys towards Net Zero, the importance of thorough debate and consultation across sectors cannot be understated.
The Federal Chamber of Automotive Industries (FCAI) welcomes the opportunity to provide this submission on the Transport and Infrastructure Net Zero Consultation Roadmap (Consultation Paper).
The FCAI is the peak Australian industry organisation representing over 60 global automotive brands who design, manufacture, import, distribute and sell light duty passenger vehicles, light commercial vehicles, and motorcycles in Australia across more than 380 models supported by almost 4,000 dealers. Our members are listed on our website.
We bring together our members to consider changes to our operating environment, develop industry-wide positions or perspectives, and drive collective initiatives for the benefits of members, consumers and the broader industry.
Australia is steadily on the pathway towards decarbonisation of the light duty transport sector with government policy and consumer purchase patterns seeing the adoption of zero and low emission vehicles grow exponentially in recent years from a relatively modest starting point.
As an industry we are committed to decarbonising the light duty transport sector and the liquid fuels that enable internal combustion engine powered vehicles to remain a part of the fleet into the future.
Over the past decade we have seen the growth in technologies such as Hybrid EV’s (HEV), Plug-In Hybrid EV’s (PHEV), Battery EV’s (BEV) and Fuel Cell EV’s (FCEV) increase from 1.17 per cent of new vehicles sold in 2014 to 18.57 per cent of all new vehicles in 20231.
With future policies, such as the New Vehicle Efficiency Standard (NVES) due to come into effect in 2025, this growth is continuing to accelerate in advance of policy, with zero and low emissions vehicles accounting for 24.88 per cent of new vehicles sold year-to-date in 20242 (to end June). Of this BEV’s specifically accounted for 7.9% of new vehicles sold year-to-date.
However, we recognise that while the pace of change is accelerating, Australia is still a market with a large car parc of more than 21 million registered vehicles3 which will take time to transition.
The transition will also occur at different paces within market segments as advancements in technology across electrification, battery chemistry and other powertrains continues.
As an example, in the medium passenger segment we see a high rate of EV sales, at 48.51 per cent, however as a segment medium passenger only makes up 5.3 per cent of new vehicles sold. In contrast, the Light Commercial segment has an EV penetration of 0.01 per cent but makes up 19.3 per cent of new vehicles sold4.
The growth in EV sales across certain segments, such as medium passenger, is occurring at a more rapid pace where electrified options are more widely available, compared with the Light Commercial segments where electrified technologies are still emerging to meet the high capability and different performance attributes consumers demand of these types of vehicles.
It is important that due consideration is taken in addressing the challenge as a whole, rather than focusing on singular policy initiatives in isolation without considering the broader inputs and implications from other elements of the economy.
Read the full submission at the link below.