Hyundai expects an exodus of brands due to new Australian emissions regulations
Australia's stringent new vehicle emissions regulations are set to send a host of auto brands running from these shores, according to local Hyundai chief Don Romano.
The ink officially dried on the federal government's New Vehicle Efficiency Standard (NVES) at the start of this year, bringing with it legislation designed to reduce the carbon footprint of the Australian car market. While the NVES came into effect on January 1, 2025, penalties won't start being accrued until July 1.
The recent federal election brought with it some uncertainty about the NVES, with former Liberal leader Peter Dutton promising to scrap the legislation. However, in the wake of Labor's win led by Anthony Albanese, there's no longer any doubt about whether it will be enforced.
Speaking to CarExpert at the launch of the pint-size Hyundai Inster electric SUV, Mr Romano said that many automakers will be caught off guard by the punitive new regulations.
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now. Supplied Credit: CarExpert
'When it comes down to NVES, there's going to be a lot of brands that are going to start falling apart because they're burying their heads in the sand,' said Mr Romano.
'They're not doing the math, they're not looking at just how much this is going to cost them to stay in business in Australia.
'I think you're going to see an exodus. You're going to see a number of brands that finally say 'I can't do it', unless the government that we just re-elected makes the decision to go in a different direction, which I think is unlikely given the election results.'
Hyundai has backed the NVES from early in the piece, expressing confidence in meeting the Australian Government's tightening CO2 targets between 2025 and 2029. However, some of its rivals have been less supportive and others including Toyota have indicated that fines would ultimately be passed onto consumers in the form of price hikes.
Having taken over as Hyundai Australia CEO just a few months ago, Mr Romano will lead the brand in its response to NVES with a focus on electric vehicles (EVs) and other 'future energy' initiatives. Supplied Credit: CarExpert
'Let's do it like Europe, [where] they're just going, 'okay, we've got to live with it, let's deal with it'. And guess what we're seeing right now in Europe? A resurgence in EVs,' he said.
While Hyundai is prepared to tackle tightening emissions regulations, Mr Romano still sees significant room for improvement in how policy is used to accelerate the transition towards greener forms of transport.
'What the government is doing is half-baked,' he concluded.
'They're pushing us to move to BEVs, only us. What they're missing, not just in Australia but everywhere, is the fact that the gas [petroleum] companies aren't being pushed to put in the charging infrastructure.
'If you were to do that, I think that resurgence would push even higher. Right now we're at 20 per cent BEVs in Europe, with a much more robust charging infrastructure. Supplied Credit: CarExpert
'Once you start doing that, then you start getting economies of scale, and then all the costs start to come down. At that point you're going to see all the advantages of BEVs, and they'll be less expensive ultimately than an ICE vehicle.
'The only way to get there… is to have a more robust charging infrastructure that engenders a lot of confidence in buyers to buy.'
Less than one in 10 vehicles sold in Australia last year were EVs (91,292 of more than 1.22 million), although that number was up 4.7 per cent on the previous year.
MORE: Everything Hyundai
MORE: How Hyundai Australia's new boss plans to reverse Korean brand's sales slide
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
an hour ago
- Sky News AU
Liberals still considering legal challenge after Bradfield recount flipped seat from Gisele Kapterian to Teal Nicolette Boele
The Liberal Party is still considering a potential legal challenge over the ultra-tight result in the federal seat of Bradfield. The possible appeal comes after a full recount reversed the initial outcome and handed the seat from Liberal Gisele Kapterian to Teal Nicolette Boele by 26 votes. Shadow industrial relations minister Tim Wilson told Sky News Sunday Agenda the decision to refer the matter to the Court of Disputed Returns was up to Ms Kapterian. 'I've heard lots of different details about what has happened in that count,' Mr Wilson said. 'There was a different result after the first count than after the full recount, which, you know, is quite an unusual thing to occur.' Mr Wilson, who himself faced a recount in his seat of Goldstein, noted that while his own recount confirmed the original result, Bradfield's did not. 'They're studying it very closely,' he said. 'It's a big decision—not just to go through that process in a legal context, but then depending on what the court decides, potentially also a by-election as well.' The comments follow confirmation from the Australian Electoral Commission (AEC) that Ms Boele had won Bradfield by a razor-thin 26-vote margin. The result flipped after the initial result declared Ms Kapterian was the winner by eight votes. Ms Kapterian has so far refused to concede and confirmed on Friday she is taking legal advice. 'This recount has created a different result—while I was ahead at the conclusion of the original count, Ms Boele is now ahead,' she said in a statement on Friday. 'I will now carefully review the two counts.' Senior Liberals are voicing support for Ms Kapterian but stopping short of confirming whether a court application will be filed. Shadow finance minister James Paterson said the New South Wales Liberal Party was reviewing legal options. 'I really hope that we can find a way to have Gisele Kapterian in the Parliament,' Mr Paterson told ABC's Insiders on Sunday. 'She's exactly the type of person to make the Liberal Party better and the Parliament better. 'But it is up to the New South Wales division and ultimately, if we decide to make any application in the Court of Disputed Returns to that.' If the result stands, Opposition Leader Sussan Ley will be forced to find a new shadow assistant minister for technology and the digital economy. The AEC has stood by the integrity of the recount, confirming that only two voters were marked off the roll twice—insufficient to affect the outcome. Any application to the Court of Disputed Returns must be made within 40 days of the official result being declared.
Perth Now
an hour ago
- Perth Now
Liberals concede tax cut stance a 'strategic mistake'
The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News.
West Australian
an hour ago
- West Australian
Liberals concede tax cut stance a 'strategic mistake'
The coalition's new finance spokesman has conceded campaigning against tax cuts was a significant error, promising to push for lower rates in the next term of parliament. James Paterson said the coalition's position against Labor's two-part tax cuts, which would be a reduction of more than $500 a year from July 2027, had cost votes at the May election. While a review of policies was being carried out after the election loss, Senator Paterson said lower taxes would be a significant part of the platform. "We made a strategic mistake at the last election by opposing a tax cut and taking to the election repealing of that tax cut, and that's not a mistake we'll repeat," he told ABC's Insiders program on Sunday. "It's certainly in the Liberal Party's DNA to argue for and advocate for lower taxes whenever they can be afforded and whenever they are achievable." It comes as the coalition has come out against Labor's policy to double the tax rate on superannuation balances above $3 million. The tax rate would increase to 30 per cent in a bid to limit the number of people using their super balances for tax deductions, rather than their retirements. Senator Paterson said the policy was a grab for revenue. "We're never going to make that easier for the government, and we're fighting this because we're opposed to it in principle and we're proud to do so," he said. The median super balance for 60 to 64-year-olds is roughly $200,000 for men and $150,000 for women, with the vast majority of retirees unlikely to feel the impact of Labor's proposal. Prime Minister Anthony Albanese on Thursday said the changes would make the superannuation system fairer. Opposition industrial relations spokesman Tim Wilson said the government had broken trust with voters on the proposal. "Many people walked into the polling booth at the last election didn't think that the government was going to impose a new tax on unsold assets that was going progressively creep into the superannuation balances of millions of Australians," he told Sky News.
