Lexus Australia has expressed its backing for the Federal Government’s proposed New Vehicle Efficiency Standard (NVES) while advocating for specific modifications, citing concerns over its aggressiveness.
John Pappas, CEO of Lexus Australia, emphasized the importance of a mandated fuel efficiency standard, stating it grants access to a broader product range while promoting decarbonization within the lineup.
Although supportive of “Option B” within the NVES proposal, Lexus Australia has called for sensible amendments to address perceived challenges. Mr. Pappas highlighted the need for adjustments in various areas, including the targets and timeframes for compliance, technology credits, and penalty regimes.
He suggested revisiting vehicle categorization, particularly for larger SUVs, proposing alternative CO2 targets aligned with light commercial vehicles. Regarding the potential impact of the proposed standards on vehicle offerings in Australia, Mr. Pappas illustrated the significance of a mandatory standard in facilitating access to electrified options.
He referenced the GX hybrid model, indicating challenges in accessing vehicles tailored to local demand without a mandated standard. The NVES, announced by the Albanese Government earlier, aims to regulate CO2 emissions for passenger and light commercial vehicles, with implementation slated for January 1, 2025.
Companies failing to meet set CO2 targets may face penalties, trade credits, or offset deficiencies over subsequent years. Under Option B, the preferred model, penalties would amount to $100 per gram/kilometer over the CO2 target, with separate caps for passenger vehicles/SUVs and utility vehicles.
The proposal aims for substantial CO2 intensity reductions by 2029, presenting a framework deemed strong, ambitious, and achievable by the Federal Government.
