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Lack of fuel standard a handbrake on EVs

An independent MP fears some areas of Australia could miss out on electric car charging stations.

An independent MP fears some areas of Australia could miss out on electric car charging stations. Photo: Getty

There’s a problem with Australia’s third highest-selling car: there’s an up to eight-month wait to get one.

Interest in electric vehicles is skyrocketing nation-wide with record demand and a new survey showing one in three drivers would consider buying an EV for their next vehicle.

But getting next-generation cars into Australia is proving problematic, with limited supply sent to the country and some affordable models, like those from Volkswagen and Fiat, simply not available.

Experts say Australians will continue to languish with high costs, low supply and “scraps” from leading automakers until the federal government changes one policy to bring things into line with the rest of the world.

Even the promise of a change, they say, could make the difference between accessing affordable electric vehicles and falling further behind.

The policy in question is called a fuel-efficiency standard and it sits at the heart of the government’s National Electric Vehicle Strategy consultation paper.

Electric Vehicle Council policy head Jake Whitehead says it’s a policy that has caused confusion and consternation, with false claims it would “ban” the sale of petrol and diesel vehicles.

“It isn’t a ban on any specific vehicle being sold in Australia, it doesn’t limit a manufacturer from introducing a vehicle they want to sell,” he says.

“Fuel-efficiency standards are aimed at the manufacturers and putting the pressure on them to reduce emissions and improve the overall efficiency of all new vehicles they sell into the country.”

These policies set an average fuel-efficiency target for car makers, extending across their entire fleet.

This lets brands import vehicles that exceed emission targets if they also sell low-emission vehicles to offset them and meet the average.

Mr Whitehead says the absence of a fuel-emission standard in Australia, one of the last OECD countries yet to have one, has held back the local electric vehicle market and stopped consumers accessing cars they want.

Manufacturers are willing to sell popular EVs in Australia, he says, but have to prioritise their sale in other regions like Europe, China, the UK and US where they’re penalised for not meeting emission targets.

“Australia basically gets the scraps, the dregs, of whatever is left over,” he says.

“Car makers want to support Australia, they recognise there’s a lot of demand, but the absence of that policy has meant there’s not a strong imperative to build more electric vehicles and supply them to our market.

“Without overstating it, this policy is the linchpin in the electric future for Australia.

“Without it, we will remain five to 10 years behind the rest of the world. We will see EV sales increase but it will be at a much slower rate than what’s possible.”

Without a standard, he says, the price of electric vehicles in Australia will likely remain high.

A slow uptake would be in stark contrast to demand.

A week after the State of EV report showed electric vehicle sales rose 65 per cent over the past year, new research indicates there is appetite for more growth.

A Finder survey of 1087 Australians found one in three would consider an electric or hybrid vehicle for their next purchase.

The comparison site’s money expert Sarah Megginson says Australian motivations for investigating electric vehicles centre on saving the environment (22 per cent) and saving on petrol prices (13 per cent).

“Over the pandemic, people looked at their lifestyles and values,” she says.

“Generally people are looking at more green products.

“Volatile fuel prices are also making them consider their costs. It’s why 13 per cent of people we surveyed say they would consider switching to an electric car, which is the equivalent of 2.6 million drivers.”

Ms Megginson says crunching the numbers on electric vehicles shows drivers could save $1126 annually on petrol and offset the initial cost of the vehicle with state government incentives.

Of the respondents who wouldn’t consider buying an EV, most named higher prices as their biggest concern (26 per cent), while seven per cent said they were worried about the availability of charging stations and 14 per cent said they preferred petrol and diesel vehicles.

In another example of high EV demand, Australian rideshare drivers are increasingly making the transition.

One week after Uber teamed with finance firm Splend to offer 500 Polestar 2 electric vehicles to NSW drivers, “not far off 100” had been claimed, according to Splend chief executive Chris King.

“There’s significant demand,” he says.

“We’re on track to get them out pretty much as soon as they come in.”

But Mr King says the company, which also operates in the United Kingdom, spent more than a year trying to secure its fleet of electric vehicles while more cars and more models were available overseas.

“We see what’s going on in London and we see lots of makes and models and really good quality, cost-effective electric vehicles,” he says.

“The cars in London, the steering wheel’s on the same side, it’s the same car that would go to Australia. We’re really excited for more types of electric vehicles to come to Australia in next year … (if) the settings are more or less in place.”

If approved following the National Electric Vehicle Strategy consultation, a fuel-efficiency standard could be introduced to Australia by January 2024. Submissions for the consultation close at the end of October.

But Mr Whitehead says its impact could be felt by consumers much earlier.

“New Zealand has very recently introduced a fuel-efficiency standard and even prior to it becoming active, the supply of EVs started to increase,” he says.

“It won’t be an overnight change but it will accelerate within the first couple of years.”

– AAP

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