RAA backs plan for a national fuel efficiency standard

8 September, 2022

RAA supports the Federal Government’s recent announcement of a National EV Plan which will introduce a fuel efficiency standard to help increase the supply of EVs across the nation. Greater supply will offer drivers more choice across a range of price points.

Recent research by Deloitte indicates 66% of South Australians are looking to buy their next vehicle for less than $50k, so more affordable models are essential to assist in the transition to EVs, according to RAA Mobility Technology Specialist Mark Borlace.

“Australia has unfortunately been slower than other nations in adopting fuel efficiency standards, making us less desirable to manufacturers which consequently is limiting supply. Introducing a fuel efficiency standard will help increase the supply of more models – no matter the technology – in the market,” he said.

RAA will represent the interests of our members as the Government consults with industry bodies on a standard that will benefit all Australian drivers.

We feel a reasonable approach would be to introduce a realistic standard as soon as is practicable and increase targets over time to align with international standards.

The sooner a standard is introduced, the sooner we’ll see a positive uplift in the number of EV models in Australia, Mr Borlace said.

“Increased supply will help us move towards price parity between electric and fuel powered vehicles – which will play an important role in our State’s transition to EVs. Price parity is expected in Europe and the US sometime around 2025 – 2026, with Australia expected to follow a few years after that.”

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