AUSTRALIANS face an election fronted by a litany of problems and a diminished list of remedies with the automotive industry seemingly playing a role of scant interest to campaigners.

But issues hitting the industry hard are numerous, with the Victorian Automotive Chamber of Commerce (VACC) publishing its policy priorities in a manifesto containing 35 points that, in contrast to most electioneering, includes solutions.

Two points are solving skills shortages in the automotive industry and the wide-reaching impact of electric vehicles (EVs) that spreads from vehicle pricing through to retailing and servicing, into the murkier waters of how to tax EVs when the fossil-fuel excise evaporates.

The VACC acknowledges that the automotive industry has a key role to play in the sustainability of the environment, showing it contributes to about 18 per cent of Australia’s greenhouse gas emissions.

It therefore has a “significant opportunity” to contribute to reducing Australia’s emissions through the promotion of zero and low-emission vehicles (ZLEVs), predominantly the introduction of EVs to replace internal-combustion engined (ICE) vehicles.

The VACC said that the government has a responsibility to recognise the contribution ZLEVs can make towards achieving a net zero emission target for Australia, with policies that support greater uptake of ZLEVs by businesses and the community.

That brings issues that need support. The VACC said the transition from ICE to EV is a major step needing major capital investment by automotive businesses in new tooling, charging infrastructure and skills training.

“For many automotive businesses, these transitional costs will be prohibitive,” the VACC said.

“It is therefore critical the next Australian government takes a leadership role, in partnership with industry, to ensure the transition to ZLEVs is seamless and mitigates any major industry disruption – that is, job losses and business closures.

“It should establish a ZLEV Commission in partnership with the automotive industry – as opposed to power or energy suppliers who are significantly removed from the automotive industry frontline – with oversight of industry transition and its regulatory impact on business.

The Motor Trade Association of WA, part of the broader Motor Trades Association of Australia, told GoAutoNews Premium that establishing a carbon target would sufficiently promote LEVs to the point where Australians would be more inclined to buy them and OEMs would be more interested in importing them.

“Volkswagen has said that if the Australian government had a carbon target, it would bring its EV models into Australia,” said MTA WA Group CEO Stephen Moir.

“One of the reasons that EVs are so popular in Europe is not because of people necessarily wanting to do the right thing for the environment, but because OEMs get fined for not putting EVs into the marketplace. As a result you have a better range of EVs at lower prices as a result of the competition.

“If the next Australian government looks at a carbon target that penalises OEMs for producing ICEs and then offsets this against carbon credits for EVs, there is an incentive for people to buy EVs – without taxation and without subsidies.”

Mr Moir said the MTA WA and MTAA wanted to see a consistent national approach to the purchase and establishment of EV infrastructure, and a review on the taxation of vehicles and/or vehicle ownership that replaces the existing fuel excise, tariffs and luxury car tax.

He said a road-user charge could be the best solution, but this must be done at a federal level with the states then getting payments in a similar manner to GST returns.

The Australian Automotive Dealers Association (AADA) said the winner of this election needs to develop a truly national plan which strongly encourages states and territories to adopt a consistent approach to the emergence of low-emission vehicles (LEVs).

“Policymaking on the emerging issue of LEVs is taking place in an uncoordinated fashion with the federal, state and territory governments all going off in different directions,” the AADA’s CEO James Voortman told GoAutoNews Premium.

“Some states offer rebates while others do not. For those that do offer rebates, there are variances in which types of cars get the rebate.

“Victoria has implemented a per kilometre charge and other states have committed to it in the future. For those that are developing a per kilometre charge, the rate, commencement, and method for calculating usage is different. Rates of stamp duties are different as are registration rates.”

Mr Voortman said the next federal government should also play a leading and proactive role “in preparing all sectors of society that will be profoundly influenced by the shift to LEVs.”

“The emergence of LEVs will affect so many elements of society and will have implications for our taxation system, the electricity grid, skills required in the automotive industry, our emergency services, our building standards, our infrastructure requirements, our vehicle standards, and the list goes on.”

He said AADA members speak to car buyers every day and interest in LEVs among the buying public was growing as reflected in the sals growth of hybrid vehicles, plug-in hybrid vehicles and battery electric vehicles.

“ICEs will remain a part of Australia’s fleet for decades to come, but the planning for the emergence of LEVs should have already started and needs to be prioritised after this election,” he said.

By Neil Dowling