TRUCK industry players in Australia are likely to have dodged a bullet with the government-sanctioned NVES clarification of the demarcation between a light-commercial vehicle and a light truck. But it may not all be good news.

Isuzu Australia Ltd (IAL), which is the truck market leader in Australia and markets trucks from 4.5-tonne GVM through to 30-tonne GVM, welcomed the differential that is based on the threshold of 4.5-tonne GVM.

But it remains cautious about how – and when – the New Vehicle Efficiency Standard (NVES) will be implemented. The NVES has a starting date of January 1, 2025.

IAL sales and aftersales director Ben Lasry told GoAutoNews Premium that “we think we will be exempt” from NVES rules.

“The government has said that anything above 4.5t GVM is a truck,” he said.“So the 4.5-tonne GVM base objectively differentiates a light commercial vehicle from a commercial vehicle and we are confident that we are exempt.

“However, we don’t know if that will be forever. What happens in Canberra and what the Greens dictate will rule what happens next.”

The NVES has also triggered moves within the industry towards an exempt status, including the recent GVM upgrade of the latest Toyota 79-Series that, like the smallest Isuzu truck,  now moves out of the light-commercial vehicle class.

Much of the implementation of the NVES threshold is based on the ability to drive 4.5t trucks on a car licence – common to all vehicles that are affected by the NVES regulations.

IAL sales and aftersales director, Ben Lasry

Mr Lasry said IAL had this year joined the FCAI to become more closely associated with changes to regulations affecting transport, including the NVES.

He said it was a collaboration with the FCAI because IAL sold products that were able to be driven on a car licence.

“We can prepare for the NVES through our association with the FCAI,” he said.

There are concerns the introduction of the NVES will raise the prices of affected vehicles. 

The Motor Trades Association of Australia (MTAA) said in June that implementing NVES was expected to impact vehicle prices within the fleet market. “Higher-emission vehicles may experience price increases due to compliance costs, while prices for low-emission and electric vehicles could become more competitive,” it said.

“Fleet managers may consider strategic purchases of higher-emission vehicles before penalties come into effect in mid-2025. 

“However, day-to-day fleet management practices are unlikely to undergo significant changes, as compliance with NVES primarily falls on vehicle manufacturers.”

Mr Lasry, while conceding there were still details to be worked out on NVES implementation, said that NVES was likely to increase the price of affected vehicles because of the costs of meeting new emission rules.

In regards to trucks being affected, he said that they were first and foremost a work vehicle.

“They are bought by a lot of small businesses,” he said.

“You just can’t go and throw a 10 per cent or 15 per cent price increase at them because they won’t buy a new truck – they’ll hold onto their old truck and then you have defeated the purpose of what you’re trying to do – reduce emissions.

“The trucks on the road won’t have the latest safety equipment and they won’t reach new emission rules.“There has to be a balance. The impact of the price rise is potentially $10-15,000, so NVES is a moving target.

“We accept that NVES has to happen, but we believe it has been rushed and the rules need to be made clearer.”

IAL chief operating officer Andrew Harbison told GoAutoNews Premium that Isuzu was expanding its low and zero-emission product range and had a strong future in developing solutions to the tightening of emission rules.

He said Isuzu in North America is currently trialling an e-axle made by Cummins.

“It’s in local trials now (in the US) and is showing a lot of promise,” he said.

“In Japan, Isuzu has a fuel-cell product being trialled in conjunction with Toyota, which provided the fuel-cell technology.”

Isuzu earlier had an alliance with Honda to develop a fuel-cell powertrain for Isuzu’s Giga truck. It has also partnered with Volvo in alternative powertrains.

IAL chief operating officer, Andrew Harbison