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Climate change

Australia's 2035 Climate Change Target: Analysis of Light Vehicle Fleet and EV Take-Up

Strategic Insights

— 1 min read

The Australian government's announcement of its 2035 climate change target has triggered a response from the Federal Chamber of Automotive Industries (FCAI), highlighting the need for adequate charging infrastructure, reduced total cost of ownership, and EVs that meet Australian motorists' needs to drive EV take-up. The New Vehicle Efficiency Standard (NVES), introduced in January this year, aims to align Australia's light vehicle fleet with national emissions reduction targets. Despite a strong response from manufacturers, battery electric vehicles (BEVs) make up less than eight per cent of new vehicle sales so far this year, underscoring the challenges in meeting the targets.

Key Takeaways:

  • The New Vehicle Efficiency Standard (NVES) has been a key step in aligning Australia's light vehicle fleet with national emissions reduction targets, with more than 100 battery electric models and over 50 plug-in hybrids now available in the Australian market.
  • Battery electric vehicles (BEVs) make up less than eight per cent of new vehicle sales so far this year, highlighting the challenges in meeting the 2035 climate change target.
  • The Federal Chamber of Automotive Industries (FCAI) is calling for adequate charging infrastructure, reduced total cost of ownership, and EVs that meet Australian motorists' needs to drive EV take-up.
  • The FCAI notes that consumers are not yet purchasing EVs at the expected rate, emphasizing the need to address the barriers to uptake.
  • The legislated 2026 review will be critical to providing an early indication of how the NVES is operating and influencing the market.
  • The FCAI welcomes the $40 million allocated for kerbside and fast EV charging, which complements the work of FCAI members to introduce more EVs to the Australian market.

Statistics:

  • Over 150 low and zero emission models are now available in the Australian market, with more than 100 being battery electric models.
  • BEVs make up less than eight per cent of new vehicle sales so far this year.
  • The Australian government's 2035 climate change target aims to reduce emissions from light vehicles by [specific percentage or amount].
  • $40 million has been allocated for kerbside and fast EV charging.

Sources:

  • Federal Chamber of Automotive Industries (FCAI)
  • Original Press Release, September 18, as released by the FCAI.

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