Penalties under the Australian Government’s New Vehicle Efficiency Standard (NVES) officially came into effect on July 1, but Mitsubishi Motors Australia’s president and CEO, Shaun Westcott, insists that the rules will not lead to an increase in electric vehicle (EV) sales.
The NVES was designed to encourage manufacturers to reduce CO₂ emissions from their vehicle lineups, with enforcement beginning on January 1, 2025. If a manufacturer sells vehicles with an average carbon emission exceeding the set target, they will be fined AUD 100 (approximately 2,100 THB) per gram per kilometer of CO₂ for every vehicle that exceeds the target.
At the recent launch of the updated Mitsubishi Outlander, Mr. Westcott commented on the NVES, saying he agreed with the fundamental intent of the policy. “It’s important for people to understand that I personally, and as a company, place great importance on sustainability and the environment, and we believe the world should be doing something to reduce emissions. Not just in our industry, but across all sectors — we need to find ways to significantly reduce emissions to protect our planet for the future,” Westcott said.
From now on, automakers in Australia must comply with CO₂ emission limits for new vehicles, which are capped at 141 grams/km for passenger cars and 210 grams/km for light commercial vehicles and large SUVs. These limits will decrease every year until 2029, forcing manufacturers to sell increasingly efficient, lower-emission vehicles. One way to meet these targets is by selling more low- or zero-emission vehicles, such as EVs or hybrids.
Currently, Mitsubishi is focusing primarily on plug-in hybrid vehicles (PHEVs), although it plans to launch an EV co-developed with Foxtron in the second half of 2026. However, the fringe benefits tax (FBT) exemption for PHEVs recently came to an end.
“We need to understand the reasons why people are still not buying EVs, and one of those reasons is infrastructure — for example, where can I charge this car? And if I’m a tradesperson who needs to get to five jobs a day, but today’s EV technology can’t tow a 3.5-ton trailer full of tools, cement, or tiles for eight straight hours so I can reach all five jobs without having to spend one or two hours charging every couple of hours — then I simply won’t make any money. I wouldn’t be able to make a living,” Westcott said.
He further added that implementing emissions regulations alone cannot force people to buy EVs.
Source: Carexpert
