In its submission to Treasury’s review of the Electric Car Discount. The FCAI said measures such as the Fringe Benefits Tax (FBT) exemption remained an important complement to the New Vehicle Efficiency Standard (NVES), which is a supply-side measure.

FCAI chief executive Tony Weber said that sales results have shown that the FBT exemption has played an important role in encouraging consumers to purchase an electric vehicle.

“Manufacturers have responded to the NVES by expanding the range of BEVs available. With more than 100 models now on sale,” Mr Weber said.

“Supply-side regulation alone will not deliver the transition. Consumer demand must also be supported. If Australia is to meet its emissions reduction objectives in an affordable and practical way.”

“The Federal Government must consider other forms of demand side incentives if it removes the FBT exemption. These incentives can support the ambitious targets of the NVES by encouraging more Australians to adopt battery electric and other forms of low emissions vehicles.

EV transition slowing down

BEVs accounted for 8.3 per cent of new vehicle sales in 2025. Demand is sensitive to upfront cost, total cost of ownership and access to charging infrastructure.

“As NVES targets tighten over coming years. Changes to demand-side incentives must be carefully designed. To improve accessibility and avoid undermining consumer confidence,” Mr Weber said.

International experience shows that abrupt removal of incentives can lead to declines in electric vehicle uptake.

The FCAI recommends that the Federal Government:

• continue demand-side incentives to complement the NVES
• ensure any reform of the FBT exemption improves accessibility for consumers
• extend tariff exemptions to include electrified light commercial vehicles

The FCAI’s submission can be viewed here

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Comments this week from Federal Chamber of Automotive Industries (FCAI) Chief Executive, Tony Weber, suggest the NVES should be revised due to January and February electric vehicle (EV) retails – despite EV sales growth (4.7 per cent) outpacing the broader market (1.7 per cent) in 2024.

Head of Polestar Australia, Scott Maynard, says:

“Efforts to undermine this legislation will only disadvantage Australians.

“This week’s comments from the FCAI are the latest in a campaign to water down long-overdue emissions standards. That will deliver Australians cleaner cars and lower running costs.

“The NVES was developed to lower vehicle emissions by incentivising carmakers. To offer more hybrid, plug-in hybrid, and battery electric options, and we can clearly see car brands rising to that challenge.

“By the end of the year, Australian new car buyers will have over 100 battery electric vehicles available to them.

“Over 85 per cent of global car markets have a fuel efficiency standard in place. To deliver improved health outcomes and reduce ownership costs. We must stay the course to see these benefits realised in Australia.”

Polestar withdrew from the FCAI in March 2024. Due to its reluctance to support the introduction of emissions regulations. For new cars that would align Australia to global standards.

Chris Bowen will attend Everything Electric in Sydney this weekend, where his presence will be on display.

Chris Bowen MP will be at Everything Electric to discuss Australia’s energy future at 12 noon on Friday 7 March.

Polestar Australia expands retail network into key new regions

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Data compiled from the Electric Vehicle Council and public sources reveals battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) represented 11.3 percent of recorded car sales in February 2025 – higher than last year’s EV market share of 9.6 percent.

Sales of PHEVs have exploded, accounting for nearly 50 percent of all EV sales in a single month, including sales of Australia’s first PHEV ute – the BYD Shark – hitting the roads.*

EVs are gaining market share despite an overall contraction in new vehicle sales, with new vehicles suffering an almost 10 percent drop compared to February last year.

Electric Vehicle Council CEO Julie Delvecchio said: “Electric vehicle sales in Australia remain resilient at a time when new car sales are trending downwards and the high cost of living continues to hit families hard.

“Last month, more than 11 percent of recorded new car sales had a plug, much higher than we have seen in previous years. Plug-in hybrid vehicles are booming largely thanks to brand new models – including the BYD Shark, Australia’s first PHEV ute. We also know Australians are anticipating new BEV models, including the new Tesla Model Y and a range of exciting new models from China.

Net Zero driving emissions

“These numbers demonstrate the NVES is achieving precisely its intended purpose: expanding access to zero and low-emission vehicle options for Australians. Australians are actively embracing these new choices and this trend will continue.

“The NVES is helping Australians cut the cost of driving a car by helping them break free from volatile petrol prices. Owning an EV can save drivers up to $3,000 per year on fuel and maintenance costs.

“Australian drivers have put more than 300,000 electric vehicles on the road and counting. This is good news for everyone because it means cleaner, more sustainable transport. With a wider range of affordable options starting at under $30,000, these numbers will grow strongly across 2025.”

*February sales figures included aggregated sales data across January and February for some new models. This may affect year-on-year comparisons.

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