The Motor Trade Association SA/NT (MTA) is calling on the State Government to bring back incentives for electric vehicles, as well as expand incentives to other zero and low emission vehicles as part of its 2024-25 State Budget submission.
MTA CEO Darrell Jacobs said that despite growing sales of electric vehicles locally, international data flags slowing uptake in advanced markets such as the United Kingdom and the United States.
“At a time when electric vehicles still command a price premium, consumer incentives must remain if we are to drive our decarbonisation.”
The MTA’s proposal would reinstate the $3,000 incentive for electric vehicles valued below $68,750. These incentives would also be made available to plug in hybrid vehicles ($2,000 per vehicle) and traditional hybrid vehicles ($1,000 per vehicle).
Noting that the Federal Government’s proposed New Vehicle Efficiency Standard (NVES) was likely to push manufacturers to prioritise more fuel efficient vehicles for Australia, Mr Jacobs warned that cash on the hood for consumers will ultimately drive change.
“South Australians love their utes and 4X4s and the top 5 vehicles sold in 2023 and the first quarter of 2024 demonstrate that we must bring everyone along for the ride.”
“Our state is also challenged by its unique distance and geography which means plug in hybrids and traditional hybrids must form part of our strategy.”
Mr Jacobs argued the time was right for the State to cement its position as a nation leader in the decarbonisation of transport. “Whether through solar, wind or battery uptake, South Australia has always been at the forefront of efforts towards net-zero.”
However, Mr Jacobs cautioned of speed bumps in the transition if ordinary South Australians cannot afford a zero and low emission vehicle which meets their needs. “With cost of living front of mind for all households, affordability remains one of the top considerations for South Australians when purchasing their next vehicle.”
MTA MEDIA CONTACT: Kaes Cillessen | M: 0400 811 632 | kcillessen@mtasant.com.au
