The decision will have a flow on effect globally as car-makers assess whether or not it will be economically viable to build anything other than BEVs because the EU represents such a large slice of the international automotive market.

The EU law was based on issues pertaining specifically to that part of the world and made little or no allowances for other countries such as Australia.

The ban has provoked a strong reaction from various automotive industry groups including the Motor Trade Association of South Australia and the Northern Territory which is calling on the Federal Government and state and territory counterparts not to implement a similar blanket ban.

In a statement, the association says: “After the European Union passed a law effectively banning the sale of new petrol and diesel cars by 2035, Australia must not follow this same approach.”

Darrell Jacobs

The MTA SA/NT takes the view that “Care needs to be taken to not unfairly penalise drivers for a lack of electric vehicle availability or affordability.”

The sentiment is shared by the Australian Automotive Dealers Association (AADA) which said in November 2022  it was also “fundamentally opposed” to bans being applied to internal-combustion engine (ICE) vehicles because of “potential adverse consequences for the environment, Australian consumers, the automotive industry and the people they employ.”

“There are simply too many unknown variables to proceed with a ban,” it said.

“The uncertainty around the industry’s ability to meet the demand for EVs means that there are similar concerns around when price parity for EVs will emerge.

“Consumers who will not be able to afford an EV will simply hold onto their older ICE vehicle for longer, leaving lower and middle-income earners with vehicles which are more costly to run, less environmentally friendly and less safe.

“Three out of five people are concerned they won’t be able to afford a vehicle if there is a ban on the sale of ICE vehicles.”

Referring to the EU ban, the MTA SA/NT CEO, Darrell Jacobs said: “The European market is uniquely different to Australia’s and our focus should be on reducing emissions through technology agnostic principles.”

He said the upcoming National Electric Vehicle Strategy should not adopt similar short-term benchmarks which would affect the trade-in value of existing cars.

“If a 2035 ban was introduced in Australia, the trade-in value of petrol and diesel models would plummet and make it difficult for motorists to upgrade to an electric vehicle,” he said.

“This is why we need a national strategy that incentivises EVs and equally ensures we reduce our emissions without punishing motorists.

“For example, we know that even if Australia could achieve greater than 50 per cent of new car sales in 2030 being electric, there would still be 17 million internal combustion engine vehicles out of the 20 million cars on our roads.

“Australia also requires a comprehensive and fit-for-purpose rapid charging network and a reliable national energy grid to meet this future demand.

“Government funding support will also be required to equip the existing automotive workforce to know how to safely sell, service and repair EVs.”

Read the AADA submission to the National Electric Vehicle Strategy Consultation paper here

By Peter Barnwell