NVES or New Vehicle Efficiency Standard. So this is one acronym that will frighten a whole lot of Aussies over the next couple of years And particularly if you’re a SUV or Ute buyer…or seller.

Another update regarding the Federal government NEVS roll out. I acknowledge that this piece comes from todays Australian Newspaper – you can read the full story and other motoring commentory by clicking the link.

EDITORIAL Fuel standards backflip reflects political reality

“The Albanese government’s anticipated backtrack on the severity of fuel efficiency standards designed to promote the take-up of electric vehicles by making other options more expensive is a welcome bow to common sense. More worrying, it is further confirmation that Climate Change and Energy Minister Chris Bowen is not closely enough attuned to the difficulties being experienced in other parts of the world over the introduction of proscriptive measures in the name of reducing greenhouse gas emissions. Australia is a latecomer to the new vehicle standards and the federal government says its plans have been based on what is happening overseas, principally in the US and Europe.

Up until last week, car buyers were being told the new standards simply were a mirror of what was happening in the US. But the nation’s peak motoring body, the Australian Automobile Association, called out Mr Bowen on the detail. The AAA said it supported greater fuel efficiency standards but the US Environmental Protection Agency’s emission standards excluded heavier pick-up trucks while Mr Bowen’s proposal did not. Neither did Australia’s proposal include a long list of exemptions that made it easier for carmakers in the US to meet the standards. And the emissions calculations in the US and Australia were not comparable because of the way they were collected.

Last week the US had to water down its new standards, extending the time frame by which 60 per cent of new vehicles must be battery-operated by five years. Meanwhile, policymakers in Europe have been facing a similar problem, with the take-up of electric vehicles slower than expected and carmakers fearful of what overambitious targets would mean for them. In September, British Prime Minister Rishi Sunak delayed the transition to electric vehicles, including a program to phase out petrol and diesel cars by 2030. Under the new rules, which align better with what is happening in Europe, carmakers still face a fine of £15,000 ($28,990) for each non-electric vehicle sold over the quota. Mr Bowen’s proposed fuel efficiency standards include similar penalties, which is why the AAA says: “Prices of electric vehicles will need to be reduced to incentivise more buyers to purchase them, whereas internal combustion engine vehicles will need to be disincentivised through increased prices.”

For Anthony Albanese, the risk is a full-blown revolt by motorists who will find it more difficult and expensive to buy and drive the vehicles that are currently the most popular. For evidence of this, consider the diplomatic pressure being applied by Thailand and Japan, both suppliers of a high number of dual-cab utes and SUVs that will be penalised by the new rules. The likely outcome is that established carmakers will be forced to subsidise the imports of vehicles produced by electric-only carmakers in China.

Concerns over vehicle standards come as the federal government is forced to concede that its 2022 election promise to cut electricity bills by $275 a year is unlikely to be delivered. Also unlikely is the prospect of the government meeting its legislated 2030 greenhouse gas emissions target that will require 82 per cent of electricity to come from renewable energy sources.

None of this should have come as any surprise had Mr Bowen been focused on the difficulties being faced elsewhere. The outlook remains challenging and there is still time for the Albanese government to catch up. It should start by studying why overseas wind projects are being paid billions of dollars not to produce electricity when they are curtailed during times of high supply. Is this also something long-suffering Australian taxpayers and electricity users can look forward to in the future?” –

Comment Update 25th March 2024

Following on from my earlier commentary piece regarding NVES and particularly as it relates to Isuzu Ute Australia, this was recently posted via Fleet News.

IUA are set to present an Electric D-Max at the upcoming Bankok International Motor Show later this month, at least in proptype form. The press release goes onto indicate that it will be launched in Europe in 2025 with other markets, including Thailand and Australia to follow.

Isuzu Ute Australia (IAL) says it can not provide timing details but will continue working with the factory to establish a product that meets the needs of local customers.

“At this point in time, we are unable to comment on specifics relating to future model plans,” an IUA spokesperson said.

“That said, as part of our due diligence, IUA will continue to monitor the local market requirements including the reception of Hybrid and BEVs, and work with the factory to provide a product mix to meet Australian consumer needs.”

Now whether this model will solve the NVES issues for IUA remains to be seen. With a range of only 300 kilometres, it’s unlikely to appeal to the grey nomad market, not the high use Tradie market. And as to a price, I for one don’t see it being in a competitive segment

Original Story

I was one of the first Isuzu Ute dealers in Australia with Northstar Isuzu Ute. Back when the brand launched in 2008 Isuzu Ute had only one model / the D-Max. Later, the MU-X was launched, a people mover (suv) based on the D-Max. Since then and some will say miraculously Isuze Ute had finished in the top 10 of sales in Australia.

So what happens to Isuzu D-Max and MU-X when NVES hits in 2025? This is a brand that is used by people towing larger trailers and caravans, (capacity up to 3509kg) and just as if more importantly, tradespeople for work. Builders, Electricians, Painters, Brickies, and almost any trade you can contemplate.

Isuzu uses a 3.0 litre diesel engine which produces circa 239 Grams of Co2 per kilometre travelled for the MU-X and 231 for the D-Max. My calculations suggest that the MU-X tax will see a price increase of around $9800 and for the D-Max circa $3200.

Now at this point Isuzu Ute doesn’t have an EV or Hybrid alternative that will bring it below the co2 limit. But rumour is that in 2025 the company may introduce a mid hybrid mated to a 2.2L Turbo Engine. And perhaps the suggestion of an EV D-Max in 2027 may help with this outrageous tax. Time will tell, but here’s what Isuzu Ute had to say recently.

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.

And what about the big American style utes. Here’s there average co2 levels are around 305 Grams Per kilometre (Ford F150 XLT) which may see a price rise of over $10,000. So if my calculation is correct, then perhaps the government imposition will price them out of the market And think for a moment how many people will lose employment if Isuzu Ute leaves the market. And the companies that converts the American vehicle to RH drive with modifications.

And the talk of importers buying credits from Electric Car Manufacturers will see the credits earned by the like of Polestar, BYD and Tesla – for cars manufactured in China

NVES Chris Bowen isn’t the cleverest tool in the shed. So what’s he up to?

Frankly, this is my first look at NVES, but I’ll be investigating it as an ongoing matter as more information is rolled out. Unlike most of the nations introducing this type of legisltation, Australia is a very different country with vast distances between cities and a greater penchant for long distance travel. Bowen and his ilk (Greens, Teals and others) are suburban based – they rarely venture outside of the CBD. But IMHO, they don’t really care too much about the average person. They’re more focussed on what they need to do to be re-elected.

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Bob Aldons has spent all his working life (almost) around cars, as a salesman, sales manager, dealer principal, franchise owner or collecting automotive memorabilia. Bob is the current steward of a 1969 Ford Mustang, a 2005 Mini Cooper S and a 1998 Porsche Carrera 4 convertible. His current ‘daily drive’ is a Kia EV6 GT. He kicked off Car Business in 2015 and The Car Guy in 2016 after selling his dealer group, Northstar Chrysler Jeep Dodge, Northstar Fiat and Alfa Romeo, Northstar Isuzu Ute and Northstar Volkswagen. Bob and his wife, Suzi, live in Newport, Queensland.