‘Copied from America’: Dutton launches election fight over EVs

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The Coalition’s pledge to scrap fines for carmakers that exceed emissions caps imposed by Labor has raised concerns about new barriers to the influx of cheap EV models and entrenching petrol guzzlers that cost more to run.

Coalition leader Peter Dutton has said that the penalties for carmakers under the Albanese government’s New Vehicle Efficiency Standard would spike the price of popular models, including that of the Toyota RAV4, which he said would increase by $9700.

Peter Dutton spruiking his fuel excise policy on Thursday.Credit: James Brickwood

Energy Minister Chris Bowen rejected this claim and said every developed economy has implemented vehicle efficiency standards, which had not caused car prices to rise in any jurisdiction.

The fuel efficiency standard applies to new car sales and limits the average emissions of a carmaker’s overall fleet of vehicles sold each year, measured in grams of carbon dioxide per kilometre. Companies must pay a penalty of $100 for each gram per kilometre the caps are exceeded.

“We want cleaner, cheaper cars on Australian roads as we head towards net zero by 2050, but forcing unfair penalties on carmakers and consumers is not the answer,” Dutton said in a statement.

Prime Minister Anthony Albanese on Friday said Dutton’s opposition to the New Vehicle Efficiency Standard fines would stop an influx of cheaper cars.

“I find it extraordinary that Peter Dutton, who says he cares about the price of fuel, doesn’t want people to have more fuel-efficient cars, which reduce the costs of filling up their car,” Albanese said.

“It’s a nonsensical policy that Mr Dutton has come up with. But wait a couple of days’ time, he’ll probably have another one on the same thing.”

The New Vehicle Efficiency Standard is a key plank of Labor’s plan to cut greenhouse emissions to reach Australia’s legally binding 2030 climate target, with the transport sector generating more than 20 per cent of the nation’s greenhouse gas output.

Bowen argued the standard would encourage carmakers to bring more efficient petrol vehicles – and more electric models – to Australia and accused the Coalition of copying US President Donald Trump’s move to wind back former president Joe Biden’s EV policies.

“Another day, another attempt by Peter Dutton to distract from his $600 billion nuclear scheme, and his cuts to pay for it, with policies copied from America,” Bowen told this masthead.

Major car companies, including Toyota and Mitsubishi, have warned they could struggle to comply with the emissions caps.

The Federal Chamber of Automotive Industries, which represents car companies, said any fines imposed on companies that did not meet the standards would be passed on to consumers.

The chamber released figures showing EV sales stagnated in March, reaching just 4.9 per cent of total sales compared to 9.5 per cent in March 2024.

The EV sales dip comes amid a cost-of-living crunch, with sales of all passenger vehicles down in the first three months of this year compared to last year.

“It is time for the government to consider the realities faced by consumers,” the chamber’s chief executive, Tony Weber, said.

A more rapid uptake of EVs continues to face hurdles such as ongoing concerns about driving range, availability of charging stations and confusion over proprietary charging stations not being available to certain car brands.

A backlash has also hit sales of Teslas as consumers react to company boss Elon Musk’s role in the Trump administration.

Electric Vehicle Council chief executive Julie Delvecchio said the government’s efficiency standard would lower running costs for drivers of petrol and electric cars, while removing the scheme’s penalties would turn Australia into a “dumping ground” for carmakers’ older, less efficient petrol models.

“The New Vehicle Efficiency Standard is working – it is already bringing more choice in cheaper-to-run cars, lower costs at the fuel pump,” Delvecchio said.

“Removing penalties in the efficiency standard will mean one thing: Australians will be locked out of the savings that come from switching to an EV – up to $3000 a year that could be in their pocket – simply because the most fuel-efficient vehicles will never reach our shores.”

Figures from auto industry analyst firm Blueflag show an influx of new, lower-priced EVs is on the way, with 60 new models to go on sale this year and eight new car brands entering the market.

There are currently more than 40 EVs priced under $60,000 and six under $40,000.

The Smart Energy Council said scrapping fines for dirtier cars would enable carmakers to import to Australia their most inefficient petrol models without any repercussions.

“Australians will be more than $1000 worse off, burdened with more inefficient cars and more pollution,” said John Grimes, chief executive of the Smart Energy Council.

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