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← Newsroom/EVs & hybrids

A $440 million electric car tax looms for one state unless PM steps in with national scheme

Compiled by ADME Newsroom from 1 source

First reported by The Driven · 31 July at 4:14 pm

Who's covering this — 1 article

EV specialists
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Image: The Driven

The quick read

Full coverage

The Driven·EV specialists·31 July at 4:14 pm

A $440 million electric car tax looms for one state unless PM steps in with national scheme

Road-user charge forecast to collect $440 million in its first three years, with EV drivers charged more than 3c per kilometre and plug-in hybrid drivers charged 2.4c. The post A $440 million…

Read at The Driven →

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The quick read

  • EV drivers will be charged more than 3c per kilometre under the proposed road-user charge.
  • Plug-in hybrid drivers will be charged 2.4c per kilometre.
  • The road-user charge is forecast to collect $440 million in its first three years.
  • The charge will directly impact the total cost of ownership of EV and hybrid vehicles.

For dealers: The proposed road-user charge will require dealers to adapt their sales approach to address customer concerns about the total cost of ownership of EV and hybrid vehicles.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

A road-user charge of more than 3c per kilometre for EV drivers and 2.4c for plug-in hybrid drivers will directly impact the total cost of ownership, making these vehicles less competitive against petrol and diesel models in the same segment.

Pricing and Margin

The increased cost per kilometre will be a significant factor for customers comparing the running costs of different vehicle types, and dealers will need to be prepared to address these concerns in the sales process, potentially affecting pricing and margin on EV and hybrid models.

Dealers who have invested heavily in EV and hybrid stock may find themselves with a more difficult sales pitch, as the road-user charge will add a significant expense to the overall cost of these vehicles, potentially impacting sales volumes and profitability.

Competitor Response

Competitors who have a stronger lineup of petrol and diesel models may see an opportunity to promote these vehicles as a more cost-effective option, which could lead to a shift in market share and increased competition for dealers with a high reliance on EV and hybrid sales.

The road-user charge will also create an opportunity for dealers to promote the benefits of hybrid models, which will be charged at a lower rate than full EVs, potentially creating a sales advantage for dealers with a strong hybrid lineup.

Call to Action

Dealers should review their current stock and pricing strategies to ensure they are prepared for the potential impact of the road-user charge, and consider adjusting their sales approach to address customer concerns about the total cost of ownership of EV and hybrid vehicles, starting with a review of their inventory and pricing this week.

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