Australia’s vehicle manufacturing and supply market has recorded strong early results under the New Vehicle Efficiency Standard (NVES), with around two-thirds of suppliers exceeding their emissions targets in the first reporting period, according to the Electric Vehicle Council.
In a media release, the Council said the first performance report under the NVES showed suppliers outperformed their emissions targets by an average of 21 per cent for new light passenger vehicles.
The Council described the results as evidence that the reform is influencing vehicle supply and manufacturing decisions in the Australian market.
EVC Chief Executive Officer Julie Delvecchio said the report demonstrates strong industry performance following the introduction of the standard.
She stated that earlier warnings about potential supply shortages and rising prices had not materialised, and that the data shows “healthy competition and a clear acceleration in cleaner vehicles coming to Australia.”
Delvecchio said predictable standards drive innovation and investment and help modernise markets. According to the Council, the report indicates emissions are declining while consumer choice is expanding and electric vehicle sales are increasing.
The Council acknowledged the performance of several manufacturers, including Tesla and Polestar, noting their public support for the NVES framework and their results under the scheme. Delvecchio said their advocacy contributed to shifting debate around the policy.
The EVC also linked the NVES to the Federal Government’s Electric Car Discount, which provides a fringe benefits tax exemption for eligible electric vehicles.
Delvecchio said the combination of the efficiency standard and the discount is improving access and affordability, adding that increased supply and competition are contributing to downward pressure on running costs.
She cited estimates that electric vehicles are around $3,000 a year cheaper to operate than petrol and diesel vehicles.
While welcoming the overall outperformance, the Council said the results should inform future policy settings. Delvecchio said that strong first-year results from petrol and diesel vehicle manufacturers show the initial benchmarks were achievable, and cautioned against allowing large volumes of banked credits to slow the supply of lower-emissions vehicles in coming years.
She said policymakers should consider steadily strengthening future targets to maintain alignment with global markets.
The Council described the first NVES performance report as a significant milestone for Australia’s transport sector, stating that the standard is designed to reward manufacturers that bring cleaner vehicles to the Australian market and expand consumer choice.
