The Australian Authorities’s New Car Effectivity Customary (NVES) penalties formally got here into impact on July 1, however Mitsubishi Motors Australia’s president and CEO Shaun Westcott claims they received’t pressure an uptick in electrical automobile (EV) gross sales.
Designed to incentivise producers to cut back CO2 emissions throughout their automobile lineups, the NVES commenced on January 1, 2025. If automakers exceed a mean carbon emissions goal on the autos they promote every year, they’ll be penalised $100 per g/km of CO2 for each automobile which exceeds the goal.
Talking on the latest native launch for the up to date Mitsubishi Outlander, Mr Westcott addressed the difficulty of NVES by telling CarExpert he agreed with its elementary motives.
“It’s vital that folks perceive that I personally, and as an organization, we’re very involved about sustainability and the atmosphere, and we expect that the world must be doing one thing to cut back emissions,” he stated.
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“That’s not only for our trade, it’s for the whole lot. We must be taking a look at lowering important emissions to guard our planet for the long run.”
The NVES units out to do exactly that. Put merely, producers at the moment are topic to CO2 limits for brand spanking new automobiles, that are 141g/km for passenger automobiles and 210g/km for mild business autos and heavy-duty SUVs. These limits will scale back yearly till 2029, forcing producers to promote more and more environment friendly autos.
Among the many methods to get round this and proceed to promote ‘dirtier’ autos is to promote extra zero- and low-emission automobiles like EVs and hybrids, however Mr Westcott doesn’t anticipate authorities rules to reverse latest tendencies in EV demand.
“I feel there’s a level of naivety that thinks that in the event you simply penalise us as [manufacturers], all of us, that by some means that’s miraculously going to vary the market,” he stated.
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“And the truth is, as we sit right here right now, finally depend, and I’m dropping depend, there are [more than 85] battery EV choices out there within the Australian market. There isn’t a scarcity of selection, and but battery-electric autos are nonetheless in [low demand].
“That’s not due to penalties or an absence of penalties. We’ve obtained loads of these, however they’re not going to vary the equation, as a result of there are different items within the puzzle which can be lacking.
“Any stable, rational particular person will perceive that it’s good to deal with, and whether or not it’s arithmetic or accounting, you’ve obtained to steadiness the equation.
“We, as a [manufacturer], can’t pressure you or [anyone] to purchase an EV, and you’ll penalise us to loss of life. I nonetheless am not going to pressure you to purchase an EV.”

Mitsubishi’s present focus is firmly on plug-in hybrid autos (PHEVs), although it does have plans to launch an EV co-developed with Foxtron within the second half of 2026. Fringe advantages tax (FBT) exemptions for PHEVs just lately got here to an finish although, a transfer Mr Westcott has beforehand labelled a mistake.
Within the first half of 2025, 25,613 PHEVs have been delivered throughout Australia, a big enhance on the 8223 delivered in the identical interval final yr.
EVs, in the meantime, have notched 47,145 deliveries within the first half of 2025, however that quantity is down on the 50,905 delivered within the first half of 2024.
“We have to perceive the explanations that folks aren’t shopping for EVs, and that features, amongst different issues – there’s a couple of issues – however one among them is primarily infrastructure. The place do I cost this automobile?,” Mr Westcott stated.

“And if I’m a tradie and I’ve obtained 5 jobs to do, and the present know-how doesn’t enable me to tow a trailer that weighs 3.5 tonnes stuffed with instruments or cement or tiles for eight hours of the day, so I can get to the 5 jobs that I have to do with out spending an hour or two hours charging my automobile each two hours, then I’m going to make no cash, mate. I’m not going to make a dwelling.
“There’s a practicality, there’s frequent sense, perhaps, however just a few practicality that’s lacking in what’s occurred with NVES. The ambition is correct, however there’s a spot between ambition and actuality.
“And I don’t see anyone that’s speaking about how we’re going to repair these gaps that exist between ambition and actuality. Simply penalising us isn’t going to pressure folks to purchase automobiles.
“We are able to’t pressure folks to purchase automobiles. We’re a democratic nation, and folks have free selection.”
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