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Isuzu UTE Australia seeks (1305)

Isuzu UTE Australia (IUA) urges the Federal Government to consult further with Australia's automotive industry to identify a New Vehicle Efficiency Standard (NVES) that protects the interests and needs of all Australians living in metro, regional, and rural areas—today and into the future.

The implementation of the NVES proposed by the Government presents timing, financial and engineering challenges for many vehicle brands, particularly those brands that provide Australians with utes and large-SUVs as part of their range, and ultimately risks negatively impacting Australian consumers. 

Globally, Isuzu's transition to low- and zero-emission vehicles is underway, with the brand committed to introduce an electric ute. However, the reality is that due to the infancy of zero-emission technology in light commercial vehicles, it will take more time to develop zero-emission utes and large-SUVs that are both affordable and fit for the specific needs of Australians, including the ability to travel extensive distances, carry a load and tow. 

The current NVES proposal doesn't take into consideration automotive technology development cycles, whereas the comparative US Standards set their targets based on a forecast in alignment with emission technology developments. In this respect, we call on the Government to provide vehicle manufacturers with more time to lower the emissions of their model range through realistic product life cycles to avoid negatively impacting Australian consumers.

In further contrast to the US Standards, the current NVES Option B proposal classifies large-SUVs (including 4x4) and passenger cars in the same way, despite often serving very different purposes and fulfilling different needs. Vehicles, like a large 4x4 SUV, are built on commercial principles to be fit for purpose, be it carrying loads, towing a trailer, or getting off-road. The Government should consider the US approach here and distinguish between passenger vehicles and large-SUVs (especially 4x4).

The penalties currently proposed by the Government for not meeting emissions targets are also excessive, and many vehicle brands may be forced to increase vehicle pricing to cover penalties incurred. Vehicle brands that cannot increase vehicle pricing to cover the penalties may be left with no option but to exit the Australian market, risking a weakening of competition again to the detriment of Australian consumers. 

IUA has met directly with the Government, including the Minister for Infrastructure, Transport, Regional Development and Local Government, to provide this feedback on the proposed NVES. IUA now seeks further collaboration with the Government to achieve a solution that does not negatively impact hardworking Australians, while still seeing new vehicle emissions in Australia decline.