As anyone who has considered buying an electric car, or even a hybrid, is aware, the first thing you have to think about is the waiting list.
A handful of models are readily available, but for most of those sold in Australia, the waiting time can run into months. And used EVs are as scarce as hen’s teeth.
Unsurprisingly, Australia is among the world’s laggards in the take-up of EVs, which account for around 6.5% of new sales, with hybrids another 10.5%. Given the longevity of Australian vehicles (typically 10-20 years), the prospect of electrifying our car fleet in the early 2030s is slipping away.
In New Zealand, by contrast, sales are booming. EVs (12.5%) and hybrids (41%) make up a majority of new car registrations. This contrast is partly due to more generous subsidies. But far more important is the fact that New Zealanders are free to choose whatever vehicles they like, including imported used cars. There is no need to buy from an authorised manufacturer’s representative, as long as the vehicle’s compliance with safety and emissions standards is verified by an entry certifier, such as the Automobile Association.
New Zealand removed restrictions on imports as the car assembly industry wound down in the 1980s and 1990s. By contrast, while the Abbott government moved to shut down the remains of the car industry in 2015, it did nothing to upset the cosy market arrangements of foreign car manufacturers and their local distribution networks. This hasn’t changed under its successors.
The only way to import a vehicle in Australia without going through the established networks is through the “specialist and enthusiast vehicle (SEV) scheme”. As the name implies, although “low emissions” is one criterion for inclusion, the scheme is not designed to encourage mass adoption. Quite the opposite.
Nevertheless, the SEV scheme provides a possible starting point for allowing Australians to bypass the established dealer network. The national electric vehicle strategy consultation paper released in September 2022 recognised this and noted that: “Some stakeholders have called for regulation to be relaxed to enable a wider range of second-hand and new EVs to be imported.”
The idea has been recommended to government previously, such as by the Productivity Commission and the Australian Competition and Consumer Commission in 2014, and the Harper review in 2015.
A number of submissions endorsed and expanded on this point. But when the strategy was released in April 2023, the issue wasn’t even mentioned. Instead, it expressed the pious hope that increased government purchases of EVs would “incentivise importers to increase the range of EV models available”.
It’s not hard to explain this outcome. The Federal Chamber of Automotive Industries (FCAI) has been lobbying hard against any competition for its members, using the pejorative term “grey imports”.
“In our view, grey imports should be restricted to specialist and enthusiast people; they should be extremely rare and limited in their volume because they should not be part of the mainstream market,” said FCAI chief executive Tony Weber.
At the same time, while shifting its rhetoric to match the changing political winds, the FCAI has surreptitiously undermined any move to a genuinely effective EV strategy.
Having apparently capitulated to the FCAI on maintaining import restrictions, the Albanese government is — as on so many issues — reduced to restating the positions of its predecessor. Asked about the topic, a spokesperson claimed credit for the fact that: “It’s become easier for industry to import new and second-hand specialist and enthusiast vehicles under the 2021 road vehicle standards legislation.”
Alert readers will notice that these changes were introduced under the Morrison government, although their implementation has largely taken place since the 2022 election.
More generally, this is yet another instance where the Albanese government has been unwilling to confront powerful business lobbies, and happy to do the minimum possible when it comes to climate policy.
Until recently, polling suggested this softly-softly approach was paying electoral dividends, even if there was little in the way of policy achievement to show for it. But having given its supporters few reasons for enthusiasm, the government can’t count on their loyalty when times turn bad.
Have you been stymied in buying an EV? Let us know by writing to letters@crikey.com.au. Please include your full name to be considered for publication. We reserve the right to edit for length and clarity.
