Australia’s automotive manufacturing and import landscape is shifting as the New Vehicle Efficiency Standard (NVES) drives a rapid expansion in the availability of low- and zero-emission vehicles, according to the Electric Vehicle Council (EVC).
The NVES, which took effect earlier this year, entered a new phase on 1 July, with penalties and credits now in place to encourage manufacturers to supply their most fuel-efficient vehicles to the Australian market.
EVC chief executive Julie Delvecchio said the new milestone marks a significant step forward for the automotive industry and its role in the nation’s transition to cleaner transport options.
“July 1 marks a milestone for Australia as we power ahead with fuel efficiency standards and catch up to the rest of the developed world in accessing cleaner, cheaper-to-run cars,” Delvecchio said.
The introduction of the NVES has already led to a notable increase in vehicle choice for consumers, Delvecchio noted, with more than 150 electric vehicle (EV) models now available in Australia—double the number seen prior to the policy’s implementation.
This growth in model availability is also expected to influence manufacturers’ production decisions and supply strategies, as they respond to rising local demand and evolving regulatory requirements.
“For the NVES to succeed, this next step is crucial because it incentivises manufacturers to bring their best cars to Australia, giving consumers even more choice,” Delvecchio said.
Electric vehicle uptake continues to rise, with EVs accounting for over 11 per cent of new vehicle sales in 2025 so far – an increase of 17 per cent compared to the same period last year.
Delvecchio said the trend is particularly significant in light of the recent withdrawal of some state-based EV incentives, which she said could have enabled more families to switch to electric options.
“The NVES is not just good for those buying fuel-efficient or low-emission cars that will save them money at the bowser, it’s good for everyone. More low- and zero-emission vehicles mean quieter streets, cleaner air, and a healthier environment for us all,” she said.
According to the EVC, the expanding range of EVs now caters to a wide variety of Australians, from compact hatchbacks to electric SUVs, utes, and commercial vans, with some models priced just over $30,000.
Delvecchio added that as manufacturing responds to this policy shift, Australian drivers are increasingly choosing electric vehicles to save money and reduce reliance on fossil fuels.
“With the high cost of living, more and more Australians are choosing low- and zero-emissions vehicles to cut reliance on volatile foreign-owned fossil fuels and spend less at the bowser,” she said.
