Motor Traders’ Association NSW wants the state government to keep the EV rebate in the upcoming budget.
It has urged the NSW government to keep the EV rebate scheme in place to assist industry and consumers transition to EVs and to achieve the net zero targets being proposed, following Labor leader Chris Minns’ reported comment he is considering removing the EV rebate.
Minns allegedly said he had received advice that EV uptake incentives could raise the price of these vehicles.
NSW has a $3000 rebate for EVs that cost under $68,750 (up to 25,000 EVs only) and a stamp duty exemption for EVs that cost up to $78,000.
MTA NSW has flagged that any proposal to remove the EV rebate would be premature given the scheme is nascent and hasn’t had the chance to play out fully.
“The mixed messaging resulting from any proposed changes to the current EV rebate scheme could have far-reaching implications for the community, market dynamics, and the automotive industry at large,” says MTA NSW government relations and advocacy head Collin Jennings.
Latest figures from the Federal Chamber of Automotive Industries (FCAI) VFACTS report showcase a promising trend, he explains.
The number of electric passenger vehicles sold year-to-date in July 2023 surged from 2324 to 5544, underscoring the increasing popularity of EVs. Moreover, electric SUVs experienced a significant leap, growing from 1084 year-to-date (YTD) in July 2022 to 10,932 YTD in July 2023.
“The rebate scheme, while relatively new, has already demonstrated its positive impact on the sales of electric vehicles in both NSW and Australia,” says Jennings.
“As the original engine manufacturers (OEMs) and importers work hard to reduce the costs of electric vehicles, the existing rebate will serve as an important mechanism to bring forth the next wave of adoption and propel electric vehicles into the mainstream.”
While a significant portion of EV sales currently caters to the upper end of the market, this is attributed to supply constraints.
“As more automakers enter the electric vehicle market, the NSW Government must support the industry by fostering an environment that encourages growth,” adds Jennings.
“This includes facilitating affordability as cheaper electric vehicle models make their way into the market in the short to medium term.
“It is essential that any adjustments to the rebate scheme be carefully considered to avoid sending mixed signals to the market,” he says.
“At a time when the Federal Government is encouraging OEMs to embrace electric vehicle production, it is counterproductive for states to hinder this progress by altering the support framework.”
MTA NSW wants to see clear and aligned policy measures between state and federal governments to ensure a successful EV transition.
Mixed messages create confusion among stakeholders and undermine the collective efforts of the auto industry who have been working hard to meet demands by investing millions of dollars in training and equipment, MTA NSW points out.
It says the NSW Government needs to work in consultation with the auto industry to achieve the shared goals of increased EV adoption and reduced carbon emissions.
