New Vehicle Efficiency Standard softened for utes and light-commercial vehicles, changes welcomed by industry and environmental groups

The Federal Government has announced changes to its preferred model for the incoming New Vehicle Efficiency Standard (NVES), slightly delaying its start date and loosening the restrictions for light-commercial vehicles like utes and vans, as well as some 4WDs.

The move has been broadly welcomed by those in the industry that were concerned the NVES would too heavily penalise brands that sold utes and large SUVs like the Toyota LandCruiser or Nissan Patrol.

“This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above three tonnes, to dual-cab utes. This includes models such as the Toyota LandCruiser and Nissan Patrol,” said a press statement from the office of Minister for Climate Change and Energy, Chris Bowen.

Read more

Why the government's fuel emissions standard is dividing the car industry - and what it means for what you'll be driving in the years to come - electric cars, hybrid cars or petrol and diesel | Analysis Toyota LandCruiser and HiLux "one hundred per cent" staying due to demand, but the costs could be passed to the customer - Toyota Australia executive No, the new car emissions standards won't take away your Ford Ranger ute or Toyota LandCruiser SUV: Why you should embrace, not fear, cleaner cars for Australia | Opinion

The Federal Chamber of Automotive Industries (FCAI) welcomed the adjustments to the NVES and said it “recognises it as a step in the right direction”.

“However, we continue to have concerns about the impending challenges facing industry and motorists."

“The FCAI will review the draft legislation in detail to understand the impact to the industry and to consumers.”

The move has been broadly welcomed by those in the industry that were concerned the NVES would too heavily penalise brands that sold utes and large SUVs like the Toyota LandCruiser.

Toyota Australia President and CEO Matthew Callachor similarly said the move was welcome, though admitted there would still be challenges under the NVES.

“We welcome the willingness of the Federal Government to consult on this important public policy and to make changes that represent a positive step forward.

“Even so, Toyota and the industry face huge challenges that must be addressed before these significant reductions can be realised."

The government also confirmed it would push the start date for the NVES back by six months from the original January 1, 2025 date.

Hyundai Australia Chief Operating Officer John Kett weighed in positively on the move, as the head of a brand with a number of battery electric models on offer.

“The NVES framework seems to strike the right balance between ambition and practicality,” said Kett.

The government also confirmed it would push the start date for the NVES back by six months from the original January 1, 2025 date.

The softened rules haven’t seemed to have incurred negative feedback from industry groups focused on electric cars and the environment.

The softened rules haven’t seemed to have incurred negative feedback from industry groups focused on electric cars and the environment, with Electric Vehicle Council Chief Executive, Behyad Jafari calling it “ambitious”.

“The government’s NVES model represents strong, ambitious standards that will send a clear signal to the global automotive industry: Australia now demands the same options in electric cars, vans and utes that you offer to the US and Europe.

“We know most Australian drivers are now interested in considering electric options, so more choice on the market will naturally drive greater take-up of EVs."

Slightly delaying its start date and loosening the restrictions for light-commercial vehicles like utes and vans, as well as some 4WDs.

Climate Council Head of Policy and Advocacy, Dr Jennifer Rayner said the policy responds to "industry feedback while keeping the focus firmly on delivering benefits for Australians”.

“Having landed their final settings on the New Vehicle Efficiency Standard, the Federal Government now needs to come up with other transport policies to keep Australia on track to hit our national emission reduction target.”

The Federal Government will introduce the bill to parliament tomorrow, hoping to garner enough support for it to pass.