FCAI praises government for CO2 initiative

The FCAI issued a press release yesterday welcoming the federal government's involvement in setting new emissions reduction targets for a 2030 deadline.

But behind the scenes, its individual members are fighting a losing battle with the mob in Canberra to offer buyers of electric vehicles (EVs) rebates, subsidies or other incentives.

In the recent past Nissan has lobbied the Australian government to provide financial assistance for EV buyers, but such assistance is clearly not on the radar in the nation's capital. In the US there are tax concessions available to buyers of electric cars, encouraging a larger sales volume per capita than we see here. As the FCAI (Federal Chamber of Automotive Industries) points out in its press release, Japan has also seen a significant upturn in EV sales as a by-product of government support.

"To effectively introduce a range of low-emissions vehicles, it is important the industry and governments work together to provide the appropriate infrastructure. In countries such as Japan, Government-led consumer incentives and infrastructure investment played significant roles in the uptake of vehicles with these technologies," FCAI Chief Executive Tony Weber was quoted saying in the press release.

Nissan is not the only company concerned by the Aussie government's apparent apathy in regard to expanding sales of electric vehicles in Australia.

BMW, with its i3 EV on sale in Australia, has also lobbied the federal government for a while, according to Lenore Fletcher, BMW Australia's General Manager of Corporate Communications.

"BMW has been actively engaged in talking to the government for quite some time now, through 2014 and 2015 – and even previous to that" Ms Fletcher told motoring.com.au today. "In terms of electric vehicles, you need to have that awareness; the awareness is very important... what the technology entails and what the technology requires in terms of infrastructure.

"At BMW we're very lucky, because we don't really require a great deal of infrastructure to introduce our vehicles. They have very usable and viable ranges... around 130km, and if you are concerned you can have a range-extender that will take you to 300km."

The hurdle for BMW is pricing of the i3 (pictured). It's not especially affordable at $63,990, given its entry-level variant is only $940 less to buy than an M135i.

Ms Fletcher says that BMW doesn't insist on financial 'inducements' from the government, but the i3 might benefit from tollway and parking concessions, which typically means dialogue with state and local governments, plus statutory authorities. So it's not just a federal government issue for BMW, but it is the top tier of government that could adjust the broader market environment to reduce the challenge of selling greener vehicles in Australia.

"This could include reduction of tariffs, taxes, import duties... those sorts of things..." Ms Fletcher said.

"It's something that we haven't seen here in Australia – yet – which is disappointing from the point of view that there isn't that encouragement for companies to bring in low-emission vehicles, or for customers to purchase them."

For the moment, there are many positive murmurings out of Canberra and the state capitals, but there have been no confirmed results as yet, according to Ms Fletcher.

"The awareness and the education process has been quite successful, and we believe that's been down to a number of manufacturers – along with BMW. In terms of actual change of legislation? No, we haven't seen that yet."

As for the FCAI, a spokesperson has advised motoring.com.au today that the Chamber is definitely lobbying government for EV rebates, subsidies or other concessions.

"We will continue to work with the Government to ensure a sound understanding of this and the range of policy considerations necessary to achieve further CO2 emissions reductions from private road transport," the spokesperson wrote in an email.

When the FCAI issued its press release yesterday, in response to the government's National Energy Productivity Plan, it focused on making the global fuel industry supplying Australian consumers more accountable for fuel quality. No wonder, since that has been an issue of long standing.

"We are pleased the Government is looking to industries to provide real-world information on this important issue. We will continue to work with the Government to ensure a sound understanding of the range of policy considerations," said Tony Weber.

"This includes through the Government's current Fuel Quality Standards Act Review, in which the FCAI submission explained how motor vehicles are designed and developed to meet emissions standards with an expectation of fuel quality in a particular market. In Australia, transport fuels are of lower standard than other major markets, especially the EU, Japan and the US. This restricts the introduction of some engine variants and inhibits the performance of the latest generation of engines.

"Lifting the fuel quality in Australia could see further reductions in CO2 emissions."

But increasing sales volumes for EVs could make possible even greater reductions.