The Australian automotive industry is set for a renaissance thanks to eco-friendly vehicles. According to Treasurer Josh Frydenberg, a “global revolution in electric vehicles is underway.” This promises to open up new opportunities in our automotive industry.

Electric car sales will receive a boost

Under a Coalition government, the sale of electric cars is targeted to reach at least 25% by 2030. This will be achieved by continuing to provide concessional loans to get more electric vehicles on our roads. This is already being seen with the number of electric vehicles on the road increasing by 44% since 2017. The Renewable Energy Agency (ARENA) also estimates that electric cars will account for 29% of new car sales by 2030, a figure that will be higher with continued government intervention. This increase in electric vehicles is projected to reduce carbon emissions by 10 million tonnes.

With an increase in electric car sales comes the need to improve the infrastructure that supports these vehicles. The Coalition has announced that it will invest in charging stations. In addition, it will create a national electric vehicle strategy that coordinates the efforts made by governments at the federal, state and local levels.

The Automotive Transformation Scheme continues to transform

While large car manufacturers have stopped producing en masse, most still maintain highly skilled engineering, design and research facilities in Australia. Many of these are focusing on options that have the potential to open up our manufacturing industry again.

The Automotive Transformation Scheme was introduced in 2016 to support the industry as it went through significant change. Between 2016 and 2020 the scheme is spending $1 billion to support motor vehicle producers and component manufacturers so that they can continue to invest in research and development. The scheme has helped many companies innovate and identify a new manufacturing niche, with 65 companies still registered with the scheme.

For example, ACE Electric vehicles has built one of the most affordable electric vans on the market for businesses. With more innovations like this in the works, electric vehicles promise to revitalise the Australian automotive industry while working for our environment.

If you’d like to know more about what opportunities exist in the automotive industry, get in touch.