THE NVES policy – a key driver of Australia’s rush to EVs and growing Chinese-brand dominance of the new-car market – could be on shaky ground after the Coalition pledged to repeal it should it win government.

The issue has sparked spirited debate despite a federal election remaining two years away and the NVES having another three years to run.

Shadow energy minister Dan Tehan used a speech to The Australian’s Energy Nation summit to target the nation’s energy policy, calling for the ‘net zero’ act to be scrapped and replaced by an approach that prioritises available domestic energy resources.

Mr Tehan said the NVES formed part of the ‘net zero’ program and was creating a “distortion” in Australia’s energy demand.

Coalition’s energy and emissions reduction spokesman, Dan Tehan

“Instead of asking whether energy is abundant, cheap, reliable and secure, we began asking  whether it was sufficiently ‘green’,” he said.

“And green has now become the overriding and only consideration … (and) the consequences are becoming impossible to ignore.” 

The NVES issue has also exposed concerns by the AADA which queried it leading to an abrupt change in manufacturer market distribution “particularly benefiting emerging Chinese marques”. 

AADA CEO James Voortman told GoAutoNews Premium that NVES operated alongside EV concessions and elevated fuel costs “to influence car purchasing towards BEV, PHEV and hybrid models”.

He indicated that this influence may not be as effective as fits indicated, and that despite this pressure away from ICE vehicles, “light commercial sectors including utes, vans and large 4×4 rigs show buyers continuing strong preference for diesel powerplants”.

But he added that while the AADA believed NVES needs changes, he is very aware that car-makers have already adjusted production plans for the Australian market based on the existing NVES compliance and that NVES ends in 2029, one year after the next federal election.

Australian Automotive Dealer Association CEO, James Voortman

“While suppliers can manage adjustments inside the NVES structure, long-term policy certainty remains vital for ongoing industry operations,” he said.

“Dismantling the regulation raises timing concerns because the standard will be near its final operational phase during the next parliament.

“Legislative backing to repeal the framework also remains uncertain. 

“Ultimately, automotive businesses cannot base strategies on speculative policy shifts. 

“The standard represents current operational policy, though stakeholders anticipate pragmatic refinements from the pending review regarding light commercial classifications and compliance measurement points.

“Political stakeholders must instead collaborate to deliver optimal outcomes for buyers, automotive businesses, and environmental goals.”

Mr Tehan said that the consequences of the green ideology was rising electricity costs, saying that Australian households now pay “substantially more for electricity than the global average”. 

“The number of households experiencing energy hardship has risen sharply. Electricity prices increased 22.5 per cent in the 12 months to April 2026,” he said.

“The coalition’s energy policy starts with abundance and three non-negotiables: a focus on affordability; on reliability; and on security.”

He said this would be delivered by legislative reform under the ‘Scrap Net Zero (Cheaper Energy) Act’ to “remove the laws that are distorting our energy market”.

“This means repealing the Climate Change Act, abolishing the Safeguard Mechanism, repealing the New Vehicle Efficiency Standard Act (NVES); revoking four offshore wind energy zones; repealing all legislative prohibitions on nuclear energy; and introducing a Renewable Energy Code of Conduct.” 

He said that Australia “does not have an energy shortage. We have an abundance of energy resources – coal, gas, hydro, solar, uranium, wind and potentially geothermal”.

“So our approach should be simple: Use them. We need an all-of-the-above energy mix. 

“Energy policy is economic policy. It is cost-of-living policy. It is manufacturing policy. It is regional development policy. It is national security policy. 

“Australia has some of the greatest energy resources on Earth. 

“Our problem is not a lack of resources. 

“Our problem is that we have made energy unnecessarily green, unnecessarily complicated,  unnecessarily expensive and, in some circumstances, unnecessarily unreliable.”