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← Newsroom/EVs & hybrids

EV group wants petrol, diesel vehicle owners to be taxed twice

Compiled by ADME Newsroom from 1 source

First reported by CarExpert · 17 September at 11:41 am

Who's covering this — 1 article

Motoring press: 1

Image: CarExpert

The quick read

The Australian Electric Vehicle Association wants a universal road-user charge to be implemented in addition to the existing fuel excise.
The proposed tax changes would affect petrol and diesel vehicle owners, potentially altering the competitive landscape of the Australian automotive market.
The changes could lead to reduced demand for internal combustion engine vehicles and increased demand for electric and hybrid vehicles.
Dealers may need to adapt their inventory mix and marketing strategies to remain competitive in a changing market.

For dealers: The proposed tax changes could have significant consequences for dealers who stock a high proportion of internal combustion engine vehicles, potentially leading to reduced showroom traffic and stock holding issues.

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

ADME commentary

The ADME angle

The Australian Electric Vehicle Association's proposal to tax petrol and diesel vehicle owners twice would significantly alter the competitive landscape of the Australian automotive market, with potential consequences for dealers who stock a high proportion of internal combustion engine vehicles.

This double taxation would likely lead to a decrease in demand for petrol and diesel vehicles, resulting in reduced showroom traffic and potential stock holding issues for dealers who have invested heavily in these models.

Impact on Stock and Ordering

Dealers who have committed to large stock orders of petrol and diesel vehicles may find themselves with a surplus of unsold inventory, leading to increased holding costs and potential losses if they are unable to sell these vehicles before the tax changes come into effect.

The proposed universal road-user charge would also affect the pricing and margin of electric and hybrid vehicles, potentially making them more competitive in the market and altering the dynamics of pricing strategies for dealers.

Competitor Response and Marketing

Competitors who have already invested heavily in electric and hybrid vehicle stock and marketing may be better positioned to take advantage of the proposed tax changes, leaving other dealers to play catch-up and potentially losing market share.

Dealers who can adapt quickly to the changing market conditions and focus on marketing and promoting electric and hybrid vehicles may be able to mitigate the negative effects of the proposed tax changes and even gain a competitive advantage.

Action Plan

This week, dealers should review their current stock holdings and ordering pipeline to assess their exposure to the proposed tax changes and consider adjusting their inventory mix to include more electric and hybrid vehicles to minimize potential losses and capitalize on emerging opportunities.

Go deeper — ADME analysis