Rift in car industry over ‘loophole’ in national electric vehicle scheme

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Tesla has accused the automotive industry’s peak lobby group of seeking loopholes that could weaken new fuel pollution limits and slow the uptake of EVs.

Major carmakers have broken ranks with the board of Australia’s largest auto industry group, accusing it of lobbying the Albanese government for loopholes to slow the shift to electric vehicles and weaken new fuel pollution limits.

A spokesperson for the automotive industry group said while there was a difference of opinion over policy detail, the chamber is on the same page as Tesla, supporting government intervention to drive EV uptake. In some countries that employ multiplier credits, vehicle manufacturers are permitted to count EVs more than once when calculating their fleet emissions, which means they can meet government pollution caps while still selling lots of high-polluting vehicles.Tesla slammed the chamber for pushing multiplier credits, which “risk creating loopholes that fundamentally undermine the efficacy of a [fuel efficiency standard] and should be avoided”.

Transport emissions contribute about 20 per cent of Australia’s greenhouse footprint and EV uptake is key to meeting the nation’s climate goals.EVs would not reach 85 per cent of the nation’s vehicle fleet until 2063The chamber’s chief executive Tony Weber said his group believed “the best incentive is cash to the consumer” – such as in the US, where electric car buyers can access funding of up to $23,000 – but acknowledged such a stimulus was unlikely.

The Electric Vehicle Council, which also represents most of Australia’s major carmakers, but not Toyota, said multiplier credits may not be needed but if the government used them, it should restrict their application to specific goals for short periods, such as driving uptake of electric utes.

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