Category: Automotive

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  • Production Starts On The First Road-Going Full-Electric Volta Zero Vehicles

    Production Starts On The First Road-Going Full-Electric Volta Zero Vehicles

    Volta Trucks has begun production of the first road-going ‘Design Verification’ (DV) prototype Volta Zero vehicle at a bespoke facility in Coventry, UK. The DV prototypes are the first full-electric Volta Zero vehicles to be built in the recently unveiled production-ready design. A total of 25 vehicles will be manufactured and once completed in January, the fleet will embark on a rigorous testing regime. This will involve Volta Trucks engineers replicating a wide range of customer usage and delivery cycles, as well as taking the Volta Zero to the extremes of cold weather environments in the Arctic, hot weathers in equatorial conditions, and crash testing, all to validate the safety, durability, and reliability of the vehicle.

    The results of the comprehensive DV testing program will be fed into the final prototype stage – ‘Production Verification’ (PV). The PV prototype vehicles will be built at the company’s new manufacturing plant in Steyr, Austria, in mid-2022. Many of these production-specification prototypes will be lent to selected customers for extended periods to be tested in their real-world logistics conditions, undertaking millions of delivery kilometers, alongside Volta Trucks’ own engineers.

    Ian Collins, Chief Product Officer of Volta Trucks, said; “In August, the first Volta Zero rolling chassis started testing, and we’ve already extracted huge amounts of data from that vehicle. We have integrated that feedback into the Design Verification prototypes that start production today. We now move into a rapid test – learn – iterate – develop phase. This is going to be far more condensed and intensive than a normal vehicle testing program, given our ambitious timeline to start series production in a year’s time, which is driven by customers’ needs for zero-emission trucks.

    This will take us to some of the hottest, coldest, and most extreme conditions in the world, all to ensure that the product specification vehicles that roll off the production line by the end of 2022 deliver the highest possible quality standards and exceed our customers’ expectations.”

  • Volvos Concept Recharge Uses Sustainable Materials

    Volvos Concept Recharge Uses Sustainable Materials

    With the Concept Recharge, Volvo Cars demonstrate the steps it will take in all areas of pure electric car development to reduce its cars’ and its overall carbon footprint. The company plans to sell only fully electric cars by 2030 and aims to be a climate-neutral and circular business by 2040. By using sustainable materials inside the car, equipping it with tyres from recycled and renewable material, improving aerodynamics, and through other measures, Volvo Cars can take huge steps to reduce its carbon impact through the car itself.

    When combining those steps with the use of clean energy throughout a decarbonized supply chain, manufacturing process, and use phase of the car, Volvo Cars believes it can reduce a car’s lifecycle CO2 impact by 80 percent versus a 2018 Volvo XC60, without losing the inherent premium qualities that Volvo cars have become known for.

    This would mean that the Concept Recharge would have an overall lifecycle CO2 impact below 10 tonnes when charged with 100 percent renewable energy.

    Volvo Cars is in the forefront when it comes to working with sustainable and natural materials in its cars, and the Concept Recharge is another proof point of its commitment to push forward with this ambition.

    The interior design is rich in sustainable materials, both natural and recycled materials – think of responsibly sourced Swedish wool, environmentally responsible textiles and lightweight composites created from natural sources.

    Sourced Swedish wool is transformed into fully natural breathable cloth, free from additives. This warm and soft material is used in the seat backrest and instrument panel top. Meanwhile, the floor and lower doors are covered by a rich carpet of 100 percent wool. The seat cushions and touch surfaces on the door are made from an environmentally responsible material that contains Tencel fibers from cellulose. This fabric has great durable strength and is soft to the skin. By using Tencel fibers, which have been produced through high water- and energy-efficient processes, Volvo designers can reduce the use of plastics in interior parts.

    The seatbacks and headrests, as well as part of the steering wheel, use a new material created by Volvo Cars called Nordico. It is a soft material made from bio-based and recycled ingredients that come from sustainable forests in Sweden and Finland, providing a CO2 footprint that is 74 percent lower than leather.

    Elsewhere in the interior, including in the lower storage areas, back of the headrest, and the footrest, the Concept Recharge uses a flax composite, developed by Volvo Cars in collaboration with suppliers. It uses fibers from the linseed plant, which are mixed with composites to provide a strong and lightweight, yet attractive and natural, aesthetic.

    On the exterior, the front and rear bumpers as well as the sill moldings also consist of flax composite. Using a flax composite both inside and out in this way results in a significant reduction of plastics used.

    With the internal combustion engine making way for the pure electric powertrain, tires play an even more important role. Not only are they crucial for safety, but they also contribute largely to the vehicle’s battery range. This means tires for electric cars always have to be on top of technology development.

    Hence the Concept Recharge features special tires made by Pirelli, which are completely free from mineral oil and are made from 94 percent fossil-free materials, including recycled and renewable materials such as natural rubber, bio-silica, rayon, and bio-resin. This reflects the circular approach shared by Volvo Cars and Pirelli, with a focus on reducing resource consumption and environmental impact.

    Beyond its sustainable materials, electric powertrain, and special tires, Concept Recharge also improves the environmental credibility of SUVs through efficiency and aerodynamics.

    With the Concept Recharge, Volvo Cars envision the future of aerodynamics. It incorporates innovative aerodynamic features such as exterior design details that smooth the airflow, a new wheel design, a lower roof, and a more upright rear end.

    As such, it takes the classic SUV shape and improves airflow to increase range, while offering the incredible space opportunities that come naturally with an electric car and its lower floor.

  • Auto sales hit six-month high

    Auto sales hit six-month high

    Vietnam auto sales reached 29,797 units last month, the highest since April, indicating demand recovery after prolonged social distancing.

    This is the second monthly sales rise in a row after a chain of five dropping months from April to August when the fourth Covid-19 wave hit, according to a report by Vietnam Automobile Manufacturers Association (VAMA).

    In the first 10 months, total sales hit 218,734 units, up nearly 3 percent year-on-year.

    Truong Hai Auto (Thaco) continued to lead sales with 75,604 units in the period, up 6.3 percent year-on-year.

    Toyota followed with 45,131 units, down 9.6 percent.

    Mitsubishi, Ford, and Honda rounded out the top five.

    In October, the best-selling model was the sedan Hyundai Accent with 3,346 units, followed by the pickup truck Ford Ranger.

    Last year, sales had fallen by 8 percent to 296,634 units as the Covid-19 pandemic badly affected the economy, hitting people’s incomes and discretionary spending.

  • Apollo Tyres To Increase Prices By Up To 5 Per Cent Citing Rising Cost

    Apollo Tyres To Increase Prices By Up To 5 Per Cent Citing Rising Cost

    Apollo Tyres will increase prices by 3 to 5 percent in the domestic market in the third quarter of this fiscal to offset the rising cost, according to top company officials. The company may further increase prices in the fourth quarter if the commodity rates continue to remain high. Speaking with the media during Q2 FY22 Result Conference Call, Apollo Tyres Vice Chairman and Managing Director Neeraj Kanwar said the company had taken an average increase of around 9 percent in tyre prices up until September.

    He further said, “We are again taking price increases in this quarter varying between 3% to 5% in various segments in the months of October and November.”

    When asked what would be the level of recovery on account of cost inflation in the country post price hikes, Apollo Tyres CFO Gaurav Kumar said, “Raw material costs continue to be a moving target. Even in Q3 from Q2, we expect a small cost-push coming on account of raw material. I would say broadly, we are running about two price increases behind vis-vis what is desirable.”

    In the second quarter ended September 30, Apollo Tyres registered a 59 percent decline in standalone net profit at ₹ 89.65 crore against Rs 216.24 crore in the same period last fiscal, impacted by high raw materials cost. The revenue from operations was higher at ₹ 3,649.71 crore as against ₹ 2,911.57 crore in the year-ago quarter. The cost of raw materials consumed in the second quarter went up to ₹ 2,471.63 crore against ₹ 1,527.06 crore in the same period a year ago.

    Kumar further added that normalcy in India is gradually returning post an unprecedented pandemic situation. The company is currently witnessing a steady improvement in demand momentum. He said, “The truck tires OEM demand, which was lagging, is showing promising signs of improvement. Though, the passenger car OEM demand continues to suffer due to shortage of semiconductors.”

    He also added said the demand momentum going forward for the second half of the fiscal (H2) seems to be better and further price hikes have been announced for November to counter the raw material cost-push.

  • McLaren Denies Being Acquired By Audi

    McLaren Denies Being Acquired By Audi

    Earlier in the day, reports had emerged that Audi had closed a deal to acquire the entire McLaren group. Audi had been exploring an acquisition of the McLaren Formula 1 team to facilitate its entry into the pinnacle of motorsport in 2026 when the new engine formula come into the sport. It had been open to the full acquisition of the entire McLaren Group that gives it access to the McLaren supercar brand. Audi, of course, already has a controlling stake in Lamborghini and the Volkswagen Group has been looking to enter the world of Formula 1 with its Audi and Porsche brands. Due to the pandemic, McLaren had faced many losses and was forced to lay off 1,200 workers.

    Even though its F1 team has been on a revival and its financials have improved with external funding, last month the supercar maker also lost its longtime CEO Mike Flewitt who ran the main motorcar brand while its Applied sciences division was already sold.

    Volkswagen Group has been looking to enter the world of Formula 1 with its Audi and Porsche brands

    While Audi seems keen, McLaren has come out and rubbished all these claims. “McLaren Group is aware of a news media report stating it has been sold to Audi. This is wholly inaccurate and McLaren is seeking to have the story removed. McLaren’s technology strategy has always involved ongoing discussions and collaboration with relevant partners and suppliers, including other carmakers, however, there has been no change in the ownership structure of the McLaren Group,” the company said in an official statement.

    ly denied the report which originated from Autocar. “As part of our strategic considerations, we are constantly looking at various cooperation ideas,” said an Audi spokesperson in response to the Autocar report. Porsche is looking at a partnership with Red Bull for its powertrains division while Audi had been planning to acquire a team and McLaren was the one on top of its list. If it can’t get McLaren, it will be looking at either Sauber or Williams which are now the last of the three independent teams left in the sport.

    For Audi, McLaren is very attractive. Apart from being the third most successful F1 team in history, it is a storied supercar brand. Its team is also now back on the upswing with a great set of drivers in Lando Norris and Daniel Ricciardo. What’s interesting is if an acquisition were to happen what will happen to the McLaren brand which counts F1 core to its identity?

  • Musk Sells Nearly $7 Billion Worth Of Tesla Shares This Week

    Musk Sells Nearly $7 Billion Worth Of Tesla Shares This Week

    Tesla CEO Elon Musk offloaded a combined $6.9 billion worth of shares in the electric car company this week, taking advantage of a meteoric rally that vaulted the firm’s value to over $1 trillion. The billionaire sold 1.2 million shares held by his trust for more than $1.2 billion on Friday, the latest in a flurry of his stock transactions, according to U.S. security filing released later in the day.

    The world’s richest person and Tesla’s top shareholder last Saturday tweeted that he would sell 10% of his shares if users of the social media platform approved the move. The 10% would be about 17 million shares at the time of his tweet.

    He has sold 6.36 million shares this week – around 37% of 17 million. He now needs to offload about 10 million more shares to fulfill his pledge to sell 10% of his holdings.

    Shares of Tesla Inc closed lower on Friday, down 2.8% at $1,033.42, snapping an 11-week winning streak. The shares are up more than 46% this year following a sharp rally in October.

    The stock sales, which marked the first time that Musk cashed out on a stake of that size since the company was founded in 2003, were massive by capital market standards, eclipsing the initial public offerings of most companies.

    By getting Twitter users to green-light the move, he has blunted potential criticism of cashing out at a time when Tesla’s valuation has become frothy and shares are at record highs.

    Tesla shares fell 15.4% this week and lost some $187 billion in market value, more than the combined market capitalizations of Ford Motor Co and General Motors Co.

    Despite the week’s losses, Tesla is still the most valuable automaker in the world. Recent strong gains in the stock have underscored demand for shares of electric vehicle (EV) makers.

    After the blockbuster market debut of Rivian Automotive Inc on Wednesday, the two most valuable U.S. automakers are EV companies.

    In a veiled jab at the Irvine, California-based rival, Musk tweeted on Thursday: “There have been hundreds of automotive startups, both electric & combustion, but Tesla is (the) only American carmaker to reach high volume production & positive cash flow in past 100 years.”

    Musk had previously said he would have to exercise a large number of stock options this year, which would create a big tax bill. Selling some of his stock could free up funds to pay the taxes.

    Prior to the sale, Musk owned a stake of about 23% in Tesla, including stock options. After his exercise on 2.15 million stocks on Monday, he has options for 20 million more shares he needs to exercise by next August.

    “We expect the share sales will continue, as Musk holds millions of options worth billions of dollars that would otherwise expire worthlessly, and he has also prearranged share sales under 10b5-1 plans,” said Jason Benowitz, senior portfolio manager at the Roosevelt Investment Group LLC in New York.

  • GM Says Seeing Better Flow Of Semiconductors

    GM Says Seeing Better Flow Of Semiconductors

    General Motors Co is seeing a better flow of semiconductors, and most of its assembly plants in North America are now back to running regular production, including Mexico, a GM spokesperson told Reuters in emailed comments.

    “In fact, the week of November 1 represented the first time since February that none of our North American assembly plants were idled due to the chip shortage,” the spokesperson said.

    GM’s third-quarter earnings were hit by a global semiconductor shortage and rising commodity prices, factors it has said it expects to continue until late 2022.

  • Infineon Sees Chip Shortage Extending Into 2022 As Quarterly Revenue Beats

    Infineon Sees Chip Shortage Extending Into 2022 As Quarterly Revenue Beats

    German chipmaker Infineon expects the global semi-conductor shortage to remain well into 2022, it said as it posted a 10% rise in fourth-quarter revenue on soaring demand for chips used in everything from cars to home appliances. Shares of the company rose 2% in Wednesday morning trade.

    Infineon, which gets about 40% of sales from the automotive sector, also forecast revenue of 3 billion euros for its coming first quarter, exceeding the 2.97 billion euros expected in a poll of 19 analysts by Vara Research.

    “Demand is by far outstripping supply,” Chief Executive Reinhard Ploss said on a call with analysts.

    “Supply is bound to catch up with demand eventually, but we do not see this happening on a broader scale within 2022,” he said.

    The leading supplier of chips to the auto industry is benefiting from a tailwind as more carmakers shift to electric vehicles, along with demand for chips used in consumer appliances and industrial equipment.

    The company is also investing heavily to expand its manufacturing capacities – for silicon as well as for the compound semiconductors silicon carbide and gallium nitride.

    Last month, the Munich-based chipmaker said it would invest about 2.4 billion euros ($2.8 billion) in 2022, up from about 1.6 billion this year.

    Infineon’s revenue rose to 3 billion euros ($3.47 billion) from 2.72 billion in the fourth quarter, ahead of expectations of 2.93 billion, according to IBES data from Refinitiv.

    Rival chipmaker STMicroelectronics also reported bullish earnings in its latest quarterly report.

    Infineon forecast 2022 revenue of between 12.2 billion and 13.2 billion euros, in line with expectations. It also increased its dividend by 5 euro cents to 27 euro cents per share.

    Guidance for segment result margin – a measure of operational profitability – is predicted to come in at about 21%, up from 18.7% this year.

  • China Vehicle Sales Fall 9.4% In October 2021

    China Vehicle Sales Fall 9.4% In October 2021

    China’s auto sales fell in October for a sixth consecutive month, slumping 9.4% from a year earlier, industry data showed on Wednesday, as a prolonged global shortage of semiconductors disrupts production. Overall sales in the world’s biggest car market were 2.33 million vehicles in October, data from the China Association of Automobile Manufacturers (CAAM) showed. This time of year, known as “Golden September, Silver October”, is usually a high point in sales for the industry, with consumers making purchases after staying away from showrooms during the stifling summer months.

    One bright spot in the data was the strong sales of new energy vehicles (NEV), which grew 135% in October to 383,000 units, thanks to the government’s promotion of greener vehicles to cut pollution. These include battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles.

    Tesla Inc sold 54,391 China-made vehicles in October, slightly less than 56,006 the previous month when it hit the highest monthly sales in China since it started production in Shanghai about two years ago, according to data of export, the China Passenger Car Association (CPCA) released on Monday.

    CAAM official Chen Shihua said chip supply is easing in the fourth quarter which is helping the country’s auto production to grow gradually.

    Chinese EV makers Nio Inc sold 3,667 cars last month and Xpeng Inc delivered 10,138 vehicles. Volkswagen AG said it sold over 12,000 ID. series EVs in China in October.

  • Porsche AG Benefits From Being Part Of Volkswagen Group

    Porsche AG Benefits From Being Part Of Volkswagen Group

    Porsche AG, part of the Volkswagen Group, profits from being part of Volkswagen, its CEO Oliver Blume said on Wednesday, following speculation that an IPO of the luxury unit could be on the cards.

    “We feel very comfortable in the Volkswagen Group, we can profit from synergies. The important thing in this time is to focus on transformation,” Blume said, speaking at a car industry conference organized by autos publication Automobilwoche in Ludwigsburg, Germany. China Vehicle Sales Fall 9.4% In October 2021

    Germany’s Manager Magazin reported in October that investment bank Goldman Sachs and law firm Freshfields were among advisors working on a possible listing of the unit.

    Volkswagen’s CEO Herbert Diess said on Oct. 28 the company was constantly reviewing its portfolio but provided no further comment.

  • Vietnam supplier resumption to reboot Japan auto industry

    Vietnam supplier resumption to reboot Japan auto industry

    The resumption of auto part factories in Vietnam is set to contribute to the recovery of Japanese automakers struggling with a supply shortage due to Covid-19.

    The three Vietnam factories of Japan’s Furukawa Electric, which make wire harnesses for cars, are expected to soon return to full capacity.

    Factory floors “have returned to a position where they can respond to requests from a client,” Furukawa Electric President Keiichi Kobayashi said.

    The fourth Covid-19 wave has forced most southern companies to operate under restrictions, but since October, utilization rates at all three factories in Ho Chi Minh City and Ben Tre Province have been recovering steadily.

    Vietnam was the source of about 40 percent of Japan’s wire harness imports last year, with pandemic restrictions having forced Toyota Motor and seven other Japanese automakers to cut September production in half compared to a year earlier.

    Yazaki and Sumitomo Electric Industries also restoring production at their Vietnamese plants could further help support a production comeback in Japan’s auto sector.

  • Elon Musk Sells $5 Billion In Tesla Shares After Twitter Poll

    Elon Musk Sells $5 Billion In Tesla Shares After Twitter Poll

    Tesla Chief Executive Elon Musk sold about $5 billion in shares, the billionaire reported in filings on Wednesday, just days after he polled Twitter users about selling 10% of his stake. In his first share sale since 2016, Musk’s trust sold nearly 3.6 million shares in Tesla, worth around $4 billion, while he also sold another 934,000 shares for $1.1 billion after exercising options to acquire nearly 2.2 million shares. The 4.5 million shares equate to about 3% of his total holdings in the electric vehicle manufacturer, which makes up the vast part of his estimated $281.6 billion fortune, according to Forbes.

    Musk on Saturday polled Twitter users about selling 10% of his stake, helping to push down Tesla’s share price after a majority on Twitter said they agreed with the sale. The stock sank 12% on Tuesday in a multi-day selloff that endangered the company’s position in the $1 trillion club, but recovered 4.3% on Wednesday.

    The options-related sales were set up in September through a trading plan that allows corporate insiders to establish preplanned transactions on a schedule, the filing said. The sales of the option-related shares paid for associated taxes. It was not clear how or whether the trading plan related to Musk’s Twitter poll. Tesla did not respond to a request for comment.

    The additional share sales were separate and provide Musk with sizeable reserves of cash, given his wealth is largely tied to his stakes in Tesla and SpaceX. Musk has more than 20 million further stock options that are due to expire in August of next year. If Musk carried out the 10% stock sale plan, it would be a slight negative near term, said Mark Arnold, chief investment officer at Hyperion Asset Management in Brisbane where Tesla is the top holding in its global fund. “But the stock is pretty liquid and its not a huge percentage of total issued shares, so it shouldn’t have that much of an impact … we’re quite comfortable with the outlook for the business,” he said.

    While Tesla has lost close to $150 billion in market value this week, retail investors have been net buyers of the stock. Some 58% of Tesla trade orders on Fidelity’s brokerage website on Wednesday were for purchases, rather than sales. Retail investors made net purchases of $157 million on Monday and Tuesday, according to Vanda Research. Tesla is now up more than 51% in 2021, thanks largely to an October rally that was fueled by an agreement to sell 100,000 vehicles to rental car company Hertz.

    “The company itself is on fire, with strong results,” said Tim Ghriskey, a senior portfolio strategist at New York-based investment management firm Ingalls and Snyder. Bullish sentiment returned to Tesla’s options on Wednesday, with about 1.1 calls traded for every put. Calls are typically used for bullish trades, while buying puts shows a bearish bias. The company’s options accounted for about $109 billion in premium changing hands over the last two weeks, or about one in every three dollars traded in the U.S.-listed options market, according to a Reuters analysis of Trade Alert data.

  • Nissan Triples Profit Forecast On Strong Quarterly Results

    Nissan Triples Profit Forecast On Strong Quarterly Results

    Nissan tripled its full-year net profit forecast on Tuesday as it rebounded from the impact of the pandemic with a strong quarterly performance, saying it expected to withstand challenges including the global chip crunch and rising raw material prices. The firm now projects 180 billion yen ($1.6 billion) in net profit for the fiscal year to March 2022, up from an earlier estimate of 60 billion yen. Nissan’s last yearly net profit in the black was in 2018-19.

    For the three months to September, Nissan logged a 54.1 billion yen net profit, reversing a 44.4 billion yen net loss for the same period last year. “Our strong results are the outcome of diligent financial management, improved quality of sales and continuing product offensive. This has helped us withstand several headwinds,” Nissan CEO Makoto Uchida said in a statement.

    The firm has faced a series of trials in recent years, including weak demand during Covid-19 lockdowns and the fallout from the arrest of former boss Carlos Ghosn, now a fugitive in Lebanon.

    On Tuesday, the company revised down its full-year sales forecast to 8.8 trillion yen from 9.75 trillion yen, partially because of the impact of a semiconductor shortage plaguing auto firms worldwide. Supply disruptions have compounded the mismatch between demand for and availability of chips, a key component in modern cars.

    Nissan plans to slash its production by around 30 percent from its original plan in October and November because of the chip shortage, public broadcaster NHK reported.

  • Rivian Open Up Sales For Its Electric Van In 2023

    Rivian Open Up Sales For Its Electric Van In 2023

    Rivian which is one of the most well capitalized electric car startup’s has been making waves with its R1T and R1S electric pickup and SUV. But aside from this on the bedrock of a huge investment from e-commerce giant Amazon and Ford, Rivian has also been making an electric van which is meant for logistics operators that were originally meant just for Amazon. Now it has been revealed that it will be opening up sales for the electric van in 2023 after an order of 100,000 vans from the e-commerce giant.

    Rivian is slated to go public later this week with a valuation upwards of $60 billion. It quietly announced details about the plans for its fleet sales where it will even offer the R1T and R1S electric pickup and electric SUV and also has announced a new fleet management platform called FleetOS, alongside the electric van.

    Rivian is slated to be delivering 100,000 to just Amazon alone by 2024 as a part of its efforts to decarbonize its fleet. Amazon owns around 20 percent of Rivian after participating in multiple funding rounds and many had assumed the electric van was exclusive to Amazon, but seemingly that situation has changed which could allow Rivian to unlock more value.

    Rivian is slated to start production and deliveries of the electric van starting in December to Amazon.

    Apart from Amazon, FedEx has a deal with General Motors for EVs with its BrightDrop subsidiary. Even UPS has a deal with EV startup Arrival – so there is a trend that many logistics players are looking towards EVs which certainly is a big market for the EV players around the world.

  • Australia To Speed Up Rollout Of Electric Car Charging Stations

    Australia To Speed Up Rollout Of Electric Car Charging Stations

    The Australian government on Tuesday pledged A$178 million ($132 million) to ramp up the rollout of hydrogen refuelling and charging stations for electric vehicles but did not offer EV rebates or set targets to phase out petrol cars. Prime Minister Scott Morrison said the beefed up Future Fuels Fund provides “an Australian way” to lower transport emissions, reiterating a slogan he introduced recently to describe the country’s middle ground on climate change policy. “We will not be forcing Australians out of the car they want to drive or penalizing those who can least afford it through bans or taxes,” Morrison said in a statement. “Instead, the strategy will work to drive down the cost of low and zero-emission vehicles.”

    The additional investment, which adds to an existing A$72 million commitment and will be spent by the end of June 2025, will also aid purchases of electric cars and buses for government and business fleets. Industry groups and green activists, however, said rebates and tax breaks were necessary to encourage the purchase of cleaner cars in a country where transport is the third-largest source of carbon emissions. “The federal government purports to support choice for Australian motorists, but in fact its strategy stifles choice by making it very challenging for Australia to attract a wide selection of battery electric vehicles to the market,” Clean Energy Council Chief Executive Kane Thornton said.

    The federal funding is only slightly more than a separate commitment by New South Wales, the country’s most populous state, to spend A$171 million on EV chargers over the next four years. Victoria, the second-most populous state, is planning to spend A$29 million on charging infrastructure in regional areas and replacing government cars by 2023. The federal government said its plan should lower carbon emissions by more than 8 million tonnes by 2035, based on its own projection that battery-electric and plug-in hybrid electric vehicles will make up 30% of annual new car and light truck sales by 2030.

    Morrison in 2019 slammed a proposal by the opposition Labor Party to target half of all new car sales to be electric by 2030, saying the policy would “end the weekend” for Australians who want to tow their trailers and boats to go camping. However, a recent survey by The Australia Institute thinktank found 64% of Australians favored requiring all new car sales in the country to be zero-emission vehicles by 2035 and 71% supported government subsidies for electric cars. Battery electric and plug-in hybrid vehicle sales in Australia hit a record 8,688 in the first half of 2021, but made up just 1.6% of total light-vehicle sales. In Norway, the global leader in EV uptake, battery electric vehicle sales made up nearly 80% of new car sales in September.

    The Future Fuels Fund will focus on extending coverage of fast-charging stations to regional areas, investing with private firms in 1,000 public charging stations, and in charging infrastructure at businesses and households. Australia has about 3,000 public chargers installed across the country, according to the Electric Vehicle Council. By comparison, California alone has over 73,000 public and shared chargers. The Electric Vehicle Council said the national plan should have at least included fuel efficiency standards.

    “If Australia continues to be one of the only developed nations without fuel efficiency standards then we will continue to be a dumping ground for the world’s dirtiest vehicles,” council Chief Executive Behyad Jafari said in a statement. The transport infrastructure funding was announced just weeks after Morrison adopted a net-zero carbon emissions target by 2050 in the face of international criticism that the major coal and gas producer was not doing enough to address climate change.