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EV owners back road-user tax: But AEVA also says petrol and diesel vehicles should pay it too

Compiled by ADME Newsroom from 1 source

First reported by EV Central · 23 September at 12:00 pm

Who's covering this — 1 article

EV specialists: 1

Image: EV Central

The quick read

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EV CentralEV specialists23 September at 12:00 pm

EV owners back road-user tax: But AEVA also says petrol and diesel vehicles should pay it too

Australia’s leading electric vehicle consumer advocacy group has backed the introduction of road-user charging, but says EV drivers should not The post EV owners back road-user tax: But AEVA also…

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← Newsroom/EVs & hybrids

EV owners back road-user tax: But AEVA also says petrol and diesel vehicles should pay it too

Compiled by ADME Newsroom from 1 source

First reported by EV Central · 23 September at 12:00 pm

Who's covering this — 1 article

EV specialists: 1

Image: EV Central

The quick read

The Australian Electric Vehicle Association supports a road-user tax on all vehicles, including EVs, petrol and diesel.
The tax would apply to all vehicles, potentially reducing the price difference between EVs and traditional vehicles.
Dealers will need to adapt their pricing strategies to remain competitive.
The road-user tax could create an opportunity for dealers to promote the overall cost savings of EVs.

For dealers: The potential introduction of a road-user tax on all vehicles could impact dealers' pricing strategies and marketing campaigns, requiring them to adapt to a changing market.

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 support for a road-user tax on all vehicles, including EVs, petrol and diesel, suggests that the industry is preparing for a future where government revenue from fuel excise is reduced.

This shift in revenue collection could lead to a more level playing field for EVs, as their owners would no longer be exempt from contributing to road maintenance costs, potentially increasing their appeal to price-sensitive buyers.

Impact on Pricing and Margin

As the road-user tax would apply to all vehicles, dealers can expect that the price difference between EVs and traditional petrol and diesel vehicles may decrease, making EVs more competitive in the market.

However, this also means that dealers will need to adapt their pricing strategies to remain competitive, potentially affecting their margins.

Competitor Response and Marketing

Dealers should be prepared to respond to competitor marketing campaigns that highlight the reduced price difference between EVs and traditional vehicles, and develop their own marketing strategies to attract price-sensitive buyers.

The road-user tax could also create an opportunity for dealers to promote the overall cost savings of EVs, including lower fuel and maintenance costs, to attract buyers who are looking for a more affordable option.

Actionable Steps

This week, dealers can start reviewing their pricing strategies and developing marketing campaigns that highlight the benefits of EVs, including their potential cost savings, to prepare for the potential impact of a road-user tax on the market.

Go deeper — ADME analysis