The peak body representing franchised new car Dealers is concerned over reports the ACT Government will ban internal combustion engine (ICE) vehicles by 2035.
“We have serious concerns that this policy will have adverse consequences for the automotive industry, the people they employ and consumers in the ACT,” said AADA CEO James Voortman.
“Electric vehicles are currently more expensive and at present there is a distinct lack of choice in available makes and models. These factors may well change by 2035, but this ban has been foreshadowed in an environment where there is great uncertainty,” he said.
“The big risk is that people hold onto their older, more polluting cars for longer which will do nothing for reducing emissions.”
“It is unclear how the ACT will enforce this ban and prevent consumers from simply purchasing an ICE vehicle across the border and re-registering it here as a used car,” said Mr Voortman.
“Rather than a crude ban on ICE’s, the best way to lower emissions is to put a technology-agnostic CO2 standard in place, so that Manufacturers have a clear understanding of what they need to achieve and are given the freedom to deploy any technology to achieve that goal.”
“The transition to low emissions vehicles will have major consequences for Canberrans and all Australians and it is critical that we develop a national strategy to facilitate the transition,” he said.
“This is another example of why the transition to low emissions vehicles should be led by the Federal Government, which controls the importation of new vehicles into the Australian market,” Mr Voortman said.
“Disappointingly, there has been no consultation on this major change and automotive businesses in the ACT are left scratching their heads and asking what the future holds for them.”