The surprise choice for new car buyers ahead of Labor’s punishing emissions tax crackdown
Australians are flocking to hybrid cars over fully electric vehicles ahead of Labor’s upcoming crackdown on emissions, which could see prices rise.
One in seven new cars sold in Australia in March were petrol-electric hybrids, up from less than one in 10 battery-electric vehicles.
New data from the Federal Chamber of Automotive Industries showed a dramatic reversal Thursday from a year ago, when battery EVs easily outsold hybrids.
A year ago, battery EVs easily outsold hybrids, with a 6.8 percent market share compared to 6 percent for hybrids and plug-in hybrids.
Hybrids accounted for 14 percent of all new car sales last month, while EVs were just 9.5 percent.
The rise in hybrid sales came after Minister for Climate Change and Energy Chris Bowen unveiled the New Vehicle Efficiency Standard (NVES) in February, which aims to discourage the sale of cars with petrol or diesel engines, including hybrids.
The dramatic increase in hybrid sales has helped the Toyota RAV4 SUV – available as a hybrid but not a fully electric car in Australia – become the country’s second best-selling car in March.
Soaring sales figures put it ahead of the all-electric, zero-emissions Tesla Model Y, which fell to third place, but behind the diesel Ford Ranger at number 1.
Australians are flocking to hybrid cars instead of fully electric vehicles, despite Labor’s upcoming crackdown on emissions (pictured is a Toyota RAV4 with a hybrid engine)
But even the current RAV4 hybrid, which emits 107 grams of carbon per kilometer, would still be above Labor’s proposed NVES emissions limit.
The NVES will impose fines on car manufacturers if the average emissions of their new fleet exceed 92 grams of CO2 per kilometer in 2027.
The government’s plan, which is due to come into effect on January 1, 2025, aims to reduce average CO2 emissions from passenger vehicles to 58 grams of CO2 per kilometer by 2029.
This would represent a 59 percent reduction from the target of 141 grams per kilometer by 2025, as part of Labour’s plan to cut CO2 emissions by 43 percent by 2030.
No petrol, diesel or hybrid car on sale today would achieve that goal. Automakers were fined $100 for every gram their new fleet averaged above a certain threshold.
The Federal Chamber of Automotive Industries estimates that this would add $2,720 to the price of a gasoline RAV4, but could make a hybrid version up to $3,840 cheaper.
This would pass costs on to consumers, but it would reward EV makers who could sell carbon credits to their rivals, with a plan expected to lower the price of a Tesla Model Y by $15,390.
But a diesel-powered Toyota LandCruiser would be $13,250 more expensive than a vehicle that emits more than 200 grams of CO2 per kilometer, FCAI calculations showed.
FCAI chief executive Tony Weber, whose group has lost the support of EV makers Tesla and Chinese Volvo subsidiary Polestar, said carmakers would struggle to adapt to Labour’s efficiency standard.
Gasoline-electric hybrid cars had a 14 percent market share in March, compared with 9.5 percent for electric cars, according to new data from the Federal Chamber of Automotive Industries released Thursday (pictured shows an all-electric Tesla Model Y)
‘It is long past time for a fuel efficiency standard to be introduced. However, we remain concerned about the speed and scale of change for both manufacturers and, more importantly, consumers,” he said.
‘The car manufacturers will respond, but it will take time to develop new products, especially in the large SUV and light commercial segments, that meet expectations in terms of price, performance and emissions, noting that these vehicles are more than make up a third of new cars. car sales in Australia.”
SUVs, or cars with higher ground clearance and all-wheel drive, had a 56.6 percent market share in the first three months of 2024, with 172,234 sold out of 304,452.
The top 10 featured SUVs in six places, including the Toyota RAV4 in second with 5,070 sales, the Mitsubishi Outlander in fifth with 2,764 sales, the Australian-designed Ford Everest in seventh with 2,264 sales, and the Nissan X-Trail in eighth place. place with 2,161 sales, the larger Toyota LandCruiser in ninth place with 2,159 sales and the Mazda CX-5 in tenth place with 2,134 sales.
The rise in hybrid sales took place despite Minister for Climate Change and Energy Chris Bowen unveiling a New Vehicle Efficiency Standard (NVES) in February, aimed at discouraging the sale of petrol or diesel powered cars, including hybrids (he is on the right of the photo with the head of Mitsubishi Australia). director Shaun Westacott)