The last 18 months have been one of the most significant periods in Australia’s EV transition. In 2024, the Federal Government passed legislation to introduce a New Vehicle Efficiency Standard (NVES) for light vehicles.
To be implemented in 2025, the NVES will play a significant role in helping Australians have more choices in cost-competitive low and zero-emission options, including electric vehicles.
The need for a New Vehicle Efficiency Standard is two-fold: i) helping Australians to access the best low and zero-emission vehicles to reduce their transport costs; and ii) reducing our national carbon emissions.
Australia’s EV Transition: Economic and Environmental Benefits
Australia is entirely dependent on fuel from other countries, exposing Australians to the fickle tides of the global oil market, which usually results in higher prices for oil and other fuels at the pump.
Australia’s EV transition plan, however, provide Aussies with the means to cut fuel bills and significantly maximise their use of Australian-made energy.
The average Australian drives around 40 kilometres per day. However, those living in outer suburbs or regional areas drive even greater distances and stand to save much more from the switch to EVs due to their lower running costs.
Reducing Carbon Emission
The second significant benefit of the NVES is its role in cutting our national carbon emissions. Transport makes up about one-fifth of Australia’s emissions, with the vast majority coming from cars, followed by trucks.
As current trends suggest, besides the rapid decarbonisation of economic sectors such as energy, the transport sector will soon become Australia’s top-emitting sector.
While much technology is already available for decarbonising ports, NVES will help Australians decarbonise the transport sector by providing options to reduce vehicle carbon emissions.
Globally, the adoption of EVs continues to increase, with EVs now comprising over 18 per cent of new light vehicle sales around the world.
In Australia, EV uptake hits new records yearly, reflecting increased recognition of their significant economic, environmental, and health advantages. In 2024, Australians have already purchased over 100,000 EVs – an annual record.
Expanding Charging Infrastructure
Another crucial element that contributed to recent EV growth in Australia has been the expansion of our country’s national charging network. In July 2024, there were over thousand locations across the country offering fast or ultra-fast charging.
The EVC strongly recommends continued investment in public charging through initiatives such as kerbside charging and local governments providing publicly available charging.
Alongside the growth of public charging, governments must continue examining opportunities to provide charging opportunities to Australians without access to off-street parking and those living in multi-storey buildings.
Challenges and Setbacks in Australia’s EV Transition
While the passing of the NVES and increasing appetite for EVs are both promising developments, over the past 18 months the sector has also faced several setbacks and challenges.
Premature Cessation of Incentives
First, the EVC notes that several states, namely NSW, Victoria, Queensland and South Australia, have prematurely ceased offering purchase incentives for EVs.
To meet sales and carbon emission reduction targets set by these governments, the EVC strongly encourages all Australian governments to actively support EV uptake until at least 30 per cent of EV sales are achieved nationally and/or our recommended national target of 1 million EVs in the fleet.
This approach draws on international examples showing how sustained incentives have successfully pushed EV adoption to critical mass.
Experts say that the EV market will sustain itself beyond this threshold without the need for financial incentives. That’s why experts anticipate a higher adoption of EVs in this market than others in the same period.
Purchase incentives are always temporary, but when withdrawn prematurely, and abruptly, they risk shocking the market. The government should carry out a planned and progressive phaseout of incentives to smooth the transition.
For now, however, Australian governments need to come back to the table and consider reasonable incentives to continue to drive uptake, including support for Australians to purchase used EVs.
Addressing Mis- and Disinformation
To support Australians in transitioning to low and zero-emission vehicles, we need to provide accurate information on the options and benefits of the transition.
As we see across many fields, the rise of mis- and disinformation information on electric vehicles stymies the transition and undermines community action.
Governments, industry and non-government organisations acknowledge the impact of mis- and misinformation and work together to counteract it with evidence and compelling, narrative-based stories that explain how the transition to electric vehicles will help each Australian.
Looking Forward to the EV Policy
While the EV transition has seen significant progress in recent years, there remains a need for all levels of government to develop nationally consistent policies to increase the supply of EVs into the country and alleviate barriers to electrification across the transport sector.
Developing a National Strategy
The Federal Government’s development of a Net Zero Transport Roadmap offers promise. The EVC must develop a holistic net zero transport strategy across the transport system.
This plan needs to consider options across the Avoid-Shift-Improve framework to reduce emissions.
Drivers will require all three approaches, but many international experts and agencies recognise that the electrification of transport is the key technology shift needed for this sector to achieve net zero.
Economic Opportunities
Australia’s EV transition must occur in the next 10-15 years for new vehicle sales to provide sufficient time for the entire fleet to transition to electric drivetrains by, or ideally before, 2050.
It is equally vital that we harness the significant economic opportunities that the global EV transition provides for Australia, including pathways to develop new industries within the battery and vehicle value chains.
An embrace of the holistic lifecycle of EVs and nuanced industry policy in this globalised market offers the promise of domestic jobs in battery manufacturing and recycling and EV technical skills, to name just a few.
The EVC strongly encourages federal and state governments to grasp these opportunities for the the benefit of economic resilience and local jobs.
State of EVs 2024
The 2024 State of EVs report provides our latest annual assessment of the Australian federal, state and territory government’s performance concerning electric vehicle policy, combined with a local market update on light EV sales, model availability and charging infrastructure deployment.
This edition builds on our 2023 Australian Electric Vehicle Industry Recap, released in February 2024. We will continue to release full-year industry recaps in the first quarter of each year and State of EVs reports in the second half of each year.
The Electric Vehicle Council looks forward to continuing to work with Australian governments, industry, consumers and our members to champion Australia’s transition to an electrified transport sector.
Electric Heavy Vehicle Model Availability with Australia’s EV Transition
In the coming years, establishing a new vehicle efficiency standard for light electric vehicles will be a catalyst for increasing model options and the availability of cars at lower prices in the country.
Increasing Model Availability
There are roughly 18 distinct models of electric trucks (over 4.5t) currently on offer. The variations in weight, wheelbase and body type in the Australian market increase the range of available options.
Rigid electric trucks predominate, accounting for over 80% of available variants, mainly in the light-/medium-duty segments.
Electric trucks are attracting strong interest from commercial fleets for their potential to reduce fuel, lower total ownership costs and attract customers seeking zero-emission freight.
Given current battery technology and vehicle range, most models target urban delivery and ‘last mile’ applications.
Nevertheless, 2024 has seen more heavy-duty rigid trucks and prime mover models, opening up a greater range of options for first-mover fleets.
Regulatory Barriers
The market’s growth remains limited by Australia’s unique regulatory requirements that are not aligned with international standards.
For example, Australia’s maximum allowable truck width remains 5cm narrower than the USA, effectively preventing many American models from being sold in Australia.
State, Territory and local governments also have a key role to play in advocating for national regulatory reforms and facilitating access to electric trucks on state and local government roads.
Specifically relaxing mass limits and creating consistent and permanent road access rules across jurisdictions is a pre-condition for attracting a greater range of electric truck models to our market.
Without these changes, Australia will continue to miss out on the broadest range of electric freight vehicles that are available overseas.
What’s Australia’s EV Transition Strategy?
The dedicated strategy for the EV is primarily to act as a government commitment towards electrification and provide a roadmap for industry and consumers.
Strong EV strategies should include specific supply and demand-side measures adopted to enhance EV adoption and a straightforward implementation pathway.
It is equally imperative that they set concrete targets that match national and international climate objectives to ensure consistency in direction across policies in the long term.
Although almost all of the states and territories in Australia have developed their own EV strategic plans, the comprehensiveness of these plans varies widely.
Importantly, EV strategies should not be solely limited to light vehicles. There is a pressing need for the electrification of heavy vehicles to be considered and planned as part of EV strategies or separate electric heavy vehicle strategies.
There continues to be a significant gap in the approach across most jurisdictions in Australia.
Electric Vehicle Strategy for Freight
The gold standard in freight strategy for electric vehicles is well-targeted commitments and actions that increase the availability and adoption of electric trucks and vans.
Through this plan, electric trucks and vans are available. The freight strategy will achieve its goals of electrifying freight transport.
Supporting Diverse Needs
Such a method may comprise sales mandates, fleet targets, phase-out dates, emission regulations, and possible emission reduction goals.
A successful strategy should also consider the diverse needs of the freight industry, acknowledging variations in duty cycles, business models, transported goods, and operational requirements.
This strategy indicates support for different categories of electric vehicles- from light commercial electric vehicle applications to heavy-duty electric vehicles- to satisfy individual applications.
Successful strategies should actively work to remove regulatory barriers that limit the supply of electric trucks or damage the operational viability of integrating them into commercial fleets.
Transport & Infrastructure Net Zero Roadmap
The Australian government is advancing a roadmap and action plan for the transport sector as part of its six other sectoral strategies to achieve up to 43% reduction in greenhouse gas emissions by 2030.
The Roadmap offers a valuable opportunity to get the electric freight strategy right. However, the Roadmap has not articulated targeted actions or commitments aligned with national emissions reduction goals.
While other energy sources – such as low-carbon liquid fuels and hybrid hybridisation- play a role, battery electric power is the primary pathway for decarbonising transport.
It is the only option commercially viable for many freight applications in the near term. The EVC has made further recommendations for the Roadmap, available at EVC Submission to Transport and Infrastructure Net Zero Roadmap and Action Plan.
Accelerating Fleet Turnover
The gold standard for accelerating fleet turnover is providing tailored incentives, tax concessions, and other financial support designed to accelerate the electrification of the on-road vehicle fleet.
Strategies should focus on incentivising the replacement of diesel vehicles for new electric trucks and vans, either through ‘cash for clunker’-style trade-in programs or lowering capex premiums for new cars and their chargers.
Incentives for Fleets
These incentives are significant for larger operators whose fleet renewal strategies can result in large order volumes, driving overall sales and market certainty.
Fleet-specific programs should facilitate the procurement of various vans and trucks suited to distinct freight applications and aim to minimise penalties compared to equivalent diesel vehicles.
Incentives should be structured to ensure that EV adoption by fleets contributes to developing a viable second-hand truck market, helping to make EV vans and trucks more affordable to other commercial fleets.
NSW Electric Vehicle Fleets Incentive
The NSW Government offers periodic grant funding to help fleet operators transition to EVs. The incentive program actively covers part of the total cost of ownership gap between a battery-electric vehicle (cars, SUVs, utes).
An optional contribution towards EV smart chargers is also available under the scheme.
EWC launched the latest funding round in November 2024 with a competitive bid funding stream and $13m in ‘kickstart funding’ for fleets with fewer vehicles. You can access further information at the NSW Climate and Energy Action website.
Financial Incentives for Targeting Electric Trucks
The gold standard for incentives targeting truck and van customers are policies that reduce the price premium of EVs over their diesel equivalents.
While electric trucks and vans reduce running costs over their lifetime, the upfront sticker price of current electric models remains prohibitive for many smaller operators.
Point-of-sale incentives (e.g. vouchers, GST/stamp duty exemptions), tax concessions (e.g. instant asset write-off, accelerated depreciation), low-interest finance or registration discounts can lower the barriers to purchasing a commercial EV.
Small businesses own the vast majority of Australian trucks. Around 70% of the drivers are owner-operators with just one vehicle, but so far, efforts to support electric trucks and vans have largely excluded these owner-drivers.
Financing in major corporate fleets has relied on isolated trials and pilot projects, resulting in fragmentation. ARENA has been one of the only financiers of heavy EV deployments.
However, grant application processes are too lengthy for smaller fleets and funding amounts are typically not aligned with SME budgets.
Patchwork is a significant step to progress, and coordination and consistency are what it lacks largely.
Fund a cohesive collective approach to upscaling the fleets, dominating almost the entire freight task in Australia, as this would enable the energiser to acquire the small fleets for a robust market establishment of electric trucks and vans.
IKEA 100% Zero Emission Truck Deliveries
IKEA Australia is working with delivery partners (ANC Delivers, Kings/Capital Transport and All Purpose Transport) to secure its ambition for 100% zero-emission truck delivery to customers by 2025.
Its delivery partners work with an owner-operator and subcontractor model as they transition IKEA delivery vehicles to electric vans and light/medium-duty trucks.
As of November 2024, IKEA and its delivery partners achieved 60% zero emission deliveries, making Australia the seventh most electrified IKEA fleet globally.
You can read more about IKEA’s zero-emission delivery commitment here at A zero-emissions future.
Electric Heavy Vehicle Road Access in Australia’s EV Transition
The gold standard for improving road access for electric trucks is a supportive regulatory environment that proactively facilitates operations and route planning for early adopter fleets.
Providing certainty over where the heaviest electric trucks can operate is an essential pre-condition for increasing sales and strengthening market confidence.
Access restrictions on heavy vehicles (e.g. maximum steer axle masses) disproportionately affect electric trucks and next-generation cars that provide superior safety, environmental and efficiency benefits to the community.
In recognition of these advantages, road managers should provide regulatory concessions on mass restrictions.
Improving Regulatory Certainty
Europe generally allows up to 10t on the steer axle, and the USA allows 9t (plus an additional 900kg for EVs); in Australia, an initial concession to just 8t would start to give us access to a greater range of electric trucks currently on offer overseas.
Road managers with pre-existing arrangements on key network parts actively allow over-massing vehicles, which can quickly adapt to heavy electric trucks.
It is critical, however, that concessions and access maps form an integrated network that is operationally valuable for trucking fleets.
This road map will require proactive coordination across federal, state and local road managers; otherwise, any concessions risk creating a disjointed patchwork of access arrangements.
Queensland’s Zero Emission Heavy Vehicle Network Map
Since March 2024, Queensland has designated a dedicated access regime for zero-emission vehicles heavier than their diesel counterparts.
The Zero Emission Heavy Vehicle Network Map opens access to EVs with a steer axle mass as high as 8t to key parts of the freight network in South East Queensland.
So far, the network comprises only state-controlled roads. However, reports indicate it is the first in a series of access changes while researchers further investigate the scheme’s impact.
Education and Awareness Initiatives for Electric Trucks and Vans
The gold standard in education and awareness initiatives for electric trucks and vans involves proactive, targeted campaigns to inform fleet businesses about the opportunities of electric commercial vehicles and how best to take advantage of them.
Addressing Misconceptions
This knowledge involves countering people’s fallacies regarding electric trucks, such as ‘no range anxiety,’ ‘charging infrastructure,’ ‘different makes available,’ etc.
It also measures the cost or the advantage in reputation that could accrue to the owner-operator with a change to electric trucks in a fleet.
Test drives or demonstrations should allow the experience of firsthand electric trucks to businesses for programs, which can significantly enhance industry professionals’ confidence in the technology.
Such appendices as vehicle pollution labels may clarify further and weigh the argument for EV freight more strongly by showing how switching to electric alternatives would affect the environment.
Tasmania’s Smarter Fleets Program
Since 2015, the Tasmanian Government has taken a proactive approach to raising awareness about EVs. The Smarter Fleets Program provides dedicated training, resources and tailored support for fleet managers in Australia’s EV transition.
The Tasmanian Government funded a dedicated program for heavy vehicle fleets between 2018 and 2020, supporting truck operators in Tasmania to improve efficiency, reduce fuel expenditure and cut their carbon emissions.
Participating fleets received tailored advice, including fleet efficiency opportunities and the chance to share technical expertise. More information about the initiative is available here at Tasmanian Government’s Smarter Fleets Program.
Data Sharing on Vehicle Registration and Driving/Charging Patterns
A critical aspect of enabling the transition to electric trucks and vans is regularly published anonymised registration data at a detailed geographic level.
Accessing open and detailed information on the existing truck fleet is challenging, hindering effective planning and coordination for electrification efforts.
A dedicated data-sharing effort coordinated across jurisdictions will increase transparency around freight decarbonisation and provide valuable insights for policy development, planning, and future transport and energy modelling.
Dedicated Charging for Heavy Vehicles
Dedicated charging for heavy vehicles requires significant electrical infrastructure, including high-powered charging equipment (~1.5MW), new switchboards, large network connections and/or new substations.
Heavy vehicles also need space to manoeuvre and pull up alongside EV chargers, particularly when towing trailers.
Governments, CPOs, Landholders, and DNSP/TNSPs must work together to identify locations that make sense for this application and intersect with sufficient power supply to allow solutions to scale.
NSW, Victoria, and Queensland are leading in electrifying bus fleets and bus depots, with the NSW zero-emissions bus program and the Vic Zero Emissions Bus Trial opening its first electric bus depot in February.
The Queensland government plans to build more depots for its electric buses program following the completion of its first all-electric depot in North Lakes in February.
Sharing of Charging Infrastructure Data
DNSPs would find it helpful to know the locations of EV charging infrastructure installed on their network for electricity network planning.
Researchers need to do more work to figure out the most efficient way to collect this data to increase the visibility of the locations of EVs and charging infrastructure.
Moreover, there are challenges around the appropriate pathway to achieving this outcome. In the coming years, the progressive deployment of bi-directional chargers will increase their importance.
Australia’s EV Transition Appendices of Electric Trucks
Heavy vehicles encompass large transport vehicles such as trucks, buses, and certain vans, typically exceeding 4.5 tonnes gross vehicle mass (with some exceptions, such as lightbox trucks weighing 3.5-4.5 tonnes).
The range of trucks varies significantly depending on load, body configuration, road conditions, and other variables. Consult the manufacturer’s website directly for accurate range estimations.
The transition to EVs in Australia is excellent for reducing emissions and ensuring an eco-friendly future for the country.
Raising awareness, investing in infrastructure, and building partnerships will bring great strides toward adoption; the transformation will place clean transportation at the core of its agenda for the nation.
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