Balance needed in Australia’s vehicle transition

Australia’s peak motoring body says the Labor Government is right to be exploring how a light vehicle fuel efficiency standard can incentivise the supply of cleaner cars to our market.

The AAA has long advocated for such a mechanism and looks forward to helping the Government design an Australian-specific scheme that appropriately balances ambition, achievability, and costs to the consumer.

As Australia’s leading motoring consumer advocate, the AAA and its member clubs will be focussed on ensuring possible vehicle cost and choice impacts are fully considered as part of the upcoming process.

The AAA will also encourage the Government to avoid picking winners or focussing on a single technology, given Australia’s emission reduction targets will require increased supply of vehicles using a range of fuels and technologies.

AAA Managing Director, Michael Bradley, said: “Electric vehicles will undoubtedly be part of the solution however a technology agnostic approach will ensure Australian motorists also benefit from access to ever-improving hybrid and internal combustion engines.

“Government is right to be ambitious, however we need to be mindful of the factors which will continue to constrain Australia’s access to emerging technologies, such as our unique fuel quality, traditional vehicle preferences, and the fact we’re a relatively small right-hand-drive market.

“The AAA is pleased to see the Government considering a market-based mechanism, such as a fuel efficiency standard to incentivise global car companies to prioritise Australia. Such an approach will boost supply of cleaner cars to our market more effectively, and at a lower cost to consumers, than the subsidies and other government assistance schemes sometimes called for.”

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