Isuzu Ute Australia (IUA) urges the Federal Government to consult further with Australia’s automotive industry to identify a New Vehicle Efficiency Standard (NVES) that protects the needs of all Australians living in metro, regional, and rural areas.
It says implementing the NVES proposed by the Government presents timing, financial and engineering challenges for many vehicle brands, particularly those that provide Australians with utes and large SUVs as part of their range, and ultimately risks negatively impacting Australian consumers.
Globally, Isuzu’s transition to low- and zero-emission vehicles is underway, with the brand committed to introducing an electric ute.
However, IUA says the reality is that due to the infancy of zero-emission technology in light commercial vehicles, it will take more time to develop zero-emission utes and large SUVs that are both affordable and fit for the specific needs of Australians, including the ability to travel long distances, carry a load and tow.
It says the current NVES proposal needs to consider automotive technology development cycles. In contrast, the comparative US Standards set their targets based on a forecast in alignment with emission technology developments. In this respect, IUA is calling on the Government to provide vehicle manufacturers with more time to lower the emissions of their model range through realistic product life cycles to avoid negatively impacting Australian consumers.
Contrary to the US Standards, IUA says the current NVES Option B proposal classifies large SUVs (including 4×4) and passenger cars similarly, despite often serving different purposes and fulfilling other needs. Vehicles, like large 4×4 SUVs, are built on commercial principles to be fit for purpose, be it carrying loads, towing a trailer, or getting off-road. The Government should consider the US approach here and distinguish between passenger vehicles and large SUVs (mainly 4×4).
The penalties currently proposed by the Government for not meeting emissions targets are also excessive according to IUA, and many vehicle brands may be forced to increase vehicle pricing to cover penalties incurred. Vehicle brands that cannot increase vehicle pricing to cover the penalties may be left with no option but to exit the Australian market, risking a weakening of competition again to the detriment of Australian consumers.
IUA has met directly with the Government, including the Minister for Infrastructure, Transport, Regional Development and Local Government, to provide this feedback on the proposed NVES.
