Car groups sign “historic agreement” about EVs

The automotive industry has reached a consensus about the best way to transition from internal combustion engine technology to electric vehicles, according to the Federal Chamber of Automotive Industries.

Australia’s automotive representative organisations – which represent thousands of manufacturers, suppliers, distributors, repairers and recyclers – “reached a historic agreement at an industry summit” about how to achieve the “practical transition and electrification of the national motor vehicle fleet”.

The peak organisations committed to a series of principles, which include embracing the electrification of the Australian motor vehicle fleet and supporting the federal government to develop its National Zero and Low Emission Vehicle Electrification Transition Strategy.

They also agreed government targets should, ideally, be federally led, and that they should be “realistic, supported by facts and sound qualitative data, and applied to an Australian context”.

Industry groups said CO2 targets should be mandated – although electrification targets should not. They also opposed “bans that limit consumer choice and remove options for meeting car owners’ needs and Australia’s emission reduction targets”.

In the same vein, they said governments should consider “the entire registered vehicle fleet and the needs and requirements of Australians who own and operate them”, and introduce policies that maintain “the safety, security, service, repair and efficiency of the legacy internal combustion engine fleet”.

The Federal Chamber of Automotive Industries said automotive organisations would continue to engage with governments, stakeholders and communities about reducing CO2 and greenhouse gas emissions sourced from motor vehicles.

More EV infrastructure needed

Electric vehicles have only a 2% share of the new car market, according to Electric Vehicle Council sales figures for 2021.

But this share could increase in the years ahead now that the automotive industry has thrown its weight behind the electrification push.

One thing holding Australia back from electrification is a shortage of infrastructure. With that in mind, Infrastructure Australia’s priority list of unfunded proposals includes a proposal to develop a network of fast-charging stations on, or close to, the national highway network.

If and when the infrastructure improves, the business case to go electric will increase for many.

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