The industry’s peak lobby group has claimed that upgrades needed to prepare Australian car dealerships for the switch to electric vehicles (EVs) could leave customers shouldering the cost of the investment estimated billions of dollars.
Last month, the Australian Automobile Dealers Association (AADA) welcomed the Federal Government’s commitment to allocate $60 million in funding to upgrade electric vehicle charging systems across the country’s car dealership network.
However, a follow-up investigation by Energetics – commissioned by AADA – found that the upgrades needed to support the electric vehicle influx are expected to be significantly higher than the funding allocated by the Government. Cut.
The report also found that the cost of these upgrades can range from $130,000 for the average regional dealership, while a typical rural dealership can expect to spend $580,000 to achieve this level. similar.
AADA CEO James Voortman has warned these costs — including electric vehicle-specific tooling and technician retraining — will likely be passed on to customers and automakers are unlikely to pay the entire bill.
“The cost of chargers and associated network upgrades is significant, but dealers understand the importance of investing in this infrastructure and the role they play,” Mr. Voortman said in a media statement. in educating customers about electric vehicles.”
“New car dealerships will be at the forefront of rolling out EV chargers as manufacturers require them to install chargers in showrooms and service departments as part of their franchise agreements .
“Many consumers considering purchasing a new electric vehicle are looking to their Dealership to provide vehicle knowledge and charging experience.
“The availability of EV chargers at dealerships means vehicles in stock can be charged and ready for test drives while buyers can also see first-hand how the chargers work.
“Evidence shows that the majority of new electric vehicle owners will have their vehicle serviced by an authorized repairer under the manufacturer’s warranty, so it is important that Dealers can guarantee These cars are rechargeable.”
AADA is one of the lobby groups that has been more critical of the Federal Government’s New Vehicle Efficiency Standards (NVES).
Emissions regulations were introduced in Parliament last month after a short period of consultation with stakeholders in the Australian auto industry, resulting in watering down what the Government initially wanted to introduce. .
“This is not [New] Vehicle emissions standards that the industry has demanded, but we recognize that the Government has listened to the industry and made significant changes to its original policy and is seeking to achieve a balance balancing the needs of competing interests,” Mr. Voortman said shortly after the regulations were issued. to be announced.
“We are now committed to working with the Government on a range of key issues affecting Dealers including – ensuring that compliance with this policy is at the point of sale and not the point of import; implement meaningful auto franchise reform; and tackle the enormous investment task that Dealers face during this transition.
“These are extremely important issues for car retailers and if not addressed, NVES could have serious consequences for Dealers – we welcome the Government’s commitment to co-operate with us about these issues.
“Make no mistake, this is a major regulatory intervention into the auto industry and while we understand and accept the Government’s objectives, we also call on them to work with industry to identify any any unintended consequences arising from this policy.”
Australian electric vehicle sales rose to a record high of 87,217 vehicles in 2023, up 161% on the previous year and accounting for around 8% of total new vehicle sales in the country.
However, electric vehicles still outsell hybrids (sales 98,439), diesel vehicles (sales 379,512) and models with gasoline engines (sales 588,622).
THAN: The Australian government announced emissions reduction regulations
THAN: What lobby groups think about the Australian Government’s revised emissions regulations
