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Swedish electric upstart Polestar has ramped up its rhetoric in speaking out against the industry lobby group, the Federal Chamber of Automotive Industries (FCAI), over its commentary on Australia’s recently-introduced New Vehicle Efficiency Standard (NVES).
The NVES imposes CO2 limits for new vehicles sold in Australia from 2025. The new laws put Australia on a similar track to Europe, and has been well received by some in the industry, but lambasted by others.
European and Chinese automakers will primarily benefit with their heavily EV-weighted model line-ups and even harsher emissions regimes in their home markets. Some strong-selling Japanese automakers have spoken out against the new laws as it will require fundamental changes to the kinds of vehicles they sell in Australia.
The FCAI is perceived to favour these strong selling automakers, according to some electric car makers.
The FCAI chief, Tony Weber, said: “We are now two months into the government’s New Vehicle Efficiency Standard and while the supply of battery electric vehicles has risen dramatically, consumer demand has fallen by 37 per cent this year compared with the first two months of 2024.”
He said the NVES “will not succeed” without consumer demand and accused the Government of not considering “the realities faced by consumers” due to impending rising costs on some models thanks to the likelihood of fines being passed onto consumers.
The head of Polestar Australia, Scott Maynard said in response: “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.”
Maynard told CarsGuide, “The FCAI represents the industry, and in this instance it’s in spite of the consumer.”
“The technology, which is being encouraged by the introduction of the NVES, presents customers with a vehicle that is cheaper to buy, cheaper to maintain and cheaper to drive.”
“To push back against that is not in the best interest of people who buy cars.”
“Without legislation like this and without any obligation to try and service this market with low emissions vehicles, we’ll continue to see high-emissions vehicles land here. Most likely because the amount of markets those vehicles could be sold to have been extinguished over time”
“85 per cent of the [global] new vehicle market is now regulated by emissions schemes like this one, and we’re one of the last to pick it up.”
Of course, it’s easy for the boss of an electric-only automaker to make these comments when his range of luxury vehicles is only set to benefit. Does Maynard expect those consumers to pay more?
“Not when you look at the number of pure electric vehicles which have been introduced in the sub-$50,000 category” he said. “There were only one or two before, and now we’re seeing multiple entrants in that price-bracket.”
“With continued efficiency in production design and manufacturer’s ability to bring these product to market faster and for less money no, there’s no need [to water down emissions laws]”
“Let’s remember they’ve also got a long time before they’ll hit payday on those fines, with which they can improve.”
The biggest detractors of the NVES have been those with emissions-heavy line-ups, particularly Isuzu, which offers an exclusively diesel range. The petrol and diesel-dependant Mazda has also accused the laws of consisting only of punishments (in the form of increased prices) rather than incentives for consumers.
Isuzu accused the government of not looking after “the interests of all Australians” and the proposed emissions targets and subsequent fines (which ultimately ended up being toned down for ladder-frame vehicles) were “excessive.”
Maynard is not alone in his support for the emissions laws.
Volkswagen Group and the heads of its various brands have all spoken in favour of the NVES, with the general message from the group being that Australia becoming an “emissions sensitive” market increases the local division’s ability to negotiate with its European factories to increase the number of low-emissions vehicles on sale.
The significant delays in Volkswagen bringing its ID.4 to market are largely due to Australia being classified as a low-priority market for an EV roll-out prior to the NVES being introduced.
Chinese automakers have been generally positive on the laws, with their range of even their petrol and diesel vehicles already meeting the NVES thanks to stricter laws in China.
Australia’s NVES has been modelled to line-up with Europe’s emission scheme, the latest news from overseas has the European Union softening on emissions targets as many of its automakers have entered a period of turmoil. Both Volkswagen and Renault had expected to pay large fines under the current scheme, but they have been given a two year extension on potential fines. Meanwhile, tariffs or not, Chinese automakers like MG and BYD are still competitively priced in some European jurisdictions.
NVES restrictions began in 2025, but automakers will have a one year grace period to amend their range if they fall afoul of the CO2 limits. The restrictions continually ramp up, with the most difficult standards (which even put plugless hybrids in peril) beginning from 2027.
By 2030, even one of the current smallest, lightest hybrids sold in Australia, the Toyota Yaris, will attract fines, forcing even hybrid-heavy automakers to introduce a larger share of battery electric or plug-in hybrids over the course of the next five years.
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