This month the MTA along with other State and Federal automotive associations, responded to the Federal Government’s National Electric Vehicle Strategy consultation paper. The MTA recognises the growing interest and drive of Australian’s to adopt zero and low emission vehicles (ZLEV), and as your association representing the majority of the automotive retail, service and repair industry, we believe we are best placed to advise the government in this transition.

While the transition is supported in principle, caution needs to be taken as an uncoordinated and ad-hoc transition will lead to worse outcomes for both automotive businesses and consumers. States were beginning set their own policies which would have led to an uncompetitive ZLEV market across Australia. This is why the MTA took to the last election the need for a national and co-ordinated electric vehicle policy that set the standard for the States and Territories to follow.

In July 2022 the MTA joined other motor trade associations and chambers, along with other peak automotive organisations, to agree to a set of guiding principles on ZLEV policy, including:

• Embracing the electrification of the Australian motor vehicle fleet.
• Mandating CO₂ targets, not Electric Vehicles (EV) targets.
• Supporting the Federal Government in developing a National Zero and Low Emission Vehicle (ZLEV) Electrification Transition Strategy.
• Considering the entire registered vehicle fleet and the needs and requirements of Australians who own and operate them.
• Maintaining the safety, security, service, repair, and efficiency of the legacy Internal Combustion Engine (ICE) fleet.
• Opposing the introduction of bans that limit consumer choice and remove options for meeting car owners' needs and Australia's emission reduction targets.

• Ensuring Government targets and milestones are ideally federally led (or at least nationally consistent), are realistic, supported by facts and sound qualitative data, and applied to an Australian context.

At this meeting the future of the automotive market in Australia was discussed in the context of ZLEVs. In the first half of 2022 59% of new vehicle sales were dual cabs or larger SUVs, 22% were passenger vehicles, and 19% small SUVs. This demonstrates the overwhelming preference of new car sales in Australia are SUVs and dual-cab utility vehicles.

To encourage the uptake of ZLEVs in the Australian context, there will need to be the right products to suit Australian consumer preferences, otherwise it will be challenging for emission targets to be met with current market offerings. This is in addition to motorists who find themselves with little to no ZLEV options being unfairly penalised for the lack of ZLEV choice. A national strategy must take this into consideration.

This is particularly the case for the light and heavy commercial vehicle, and the farm and industrial machinery sectors. While there exist options for smaller sized commercial and farm machinery to adopt electric vehicles, there does not exist a commercial heavy vehicle or farm machinery that can sustain heavy loads over long distances. Hydrogen fuel cells and fuel provide an option, but none have been demonstrated at scale in Australian conditions.

Modelling done for the MTA and other automotive bodies, shows that even with 57% of new car sales in 2030 as zero emission vehicles, there will still be 17 million internal combustion and hybrid vehicles on the road. Any future strategy must account for this legacy fleet and its trade-in value.

A point that is very close to the work that the MTA undertakes is the provision of qualified technicians for the automotive sector. The National Strategy discussion paper did not focus a lot on skills and training to meet the future ZLEV fleet, and the MTA made a point in the MTA submission for the Government to consider how it will support the training of the thousands of electrical vehicle technicians needed to service, maintain and repair the ZLEV fleet.

With all these factors in mind it is important for the Australian National EV strategy to take into account Australia’s unique and particular vehicle circumstances and preferences in developing a strategy that is equitable and supportive.