Dealers Welcome Fuel Efficiency Standards, But Devil is in the Detail

The peak body representing franchised new car Dealers welcomes the Government’s commitment to develop fuel efficiency standards for light vehicles.

The AADA is pleased to see the release of the Government’s National Electric Vehicle Strategy and will participate constructively in consultations on the key element of the strategy, the design of an Australian fuel efficiency standard.

“We believe the transition to cleaner and greener passenger cars can provide major benefits for consumers and businesses in the automotive supply chain. An appropriately structured fuel efficiency standard is an important element of this journey,” said AADA CEO James Voortman.

“The automotive industry is in fierce agreement that we need such a standard, but the detail that emerges out of the consultation will be critical. If we go too hard too fast we risk undermining vehicle affordability and choice.”

“We need a policy tailored for Australia’s unique circumstances as a small, right-hand drive vehicle, full import market,” Mr Voortman said.

“The standard also needs to be considered alongside other EV policy initiatives. In the US for example, fuel efficiency standards exist alongside incredibly generous purchase incentives. The full suite of policies needs to inform our ambition in this massive transition,” he said.

“The AADA are keen to work with the Federal Government and other participants in the automotive supply chain to ensure the fuel efficiency standard is ambitious, but achievable, allowing Australians to access state of the art fuel-efficient vehicles, without reducing vehicle affordability or choice,” said Mr Voortman.

We congratulate the Government on the other initiatives to encourage EV uptake announced in the National Electric Vehicle Strategy such as improving systems and charging infrastructure, and research to inform supporting an EV circular economy.