FLEETDRIVE
“ Importantly, we wanted to know how they saw NVES impacting the industry, and how Elders could prepare for the future.”
Dealing with Misconceptions and Initial Confusion
One of the first hurdles Elders encountered was confusion about who NVES would affect.
“ A common misconception is that fleet operators like us will have specific compliance obligations under NVES. That’ s not correct— the NVES targets vehicle manufacturers, not end-users,” Nina explained.
She pointed to government messaging:
“ The Standard will incentivise car companies to supply new cars that use less fuel per kilometre... Over time, the CO2 target is lowered... companies must provide more choices of fuelefficient, low or zero emissions vehicles.”
“ Suppliers can still sell any vehicle type they choose but they’ ll need to sell more fuel-efficient models to offset any less efficient models they sell... If suppliers sell more polluting cars than their target, they will have two years to either trade credits... or generate credits themselves, before a penalty becomes payable.”
“ The target is applied nationally, on average. Manufacturers can still sell any type of vehicle they choose, but they’ ll need to balance higheremitting models with more fuel-efficient options,” Nina said.
“ If they meet their target, they earn credits. If they don’ t, they have two years to offset the excess before penalties apply,” she noted.
While end-users like Elders won’ t be penalised directly, they still need to stay informed and adaptable particularly when it comes to procurement and long-term fleet planning.
ISSUE 52 APRIL 2025 / WWW. AFMA. ORG. AU 17