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Australia will introduce a bill to parliament this week containing its first-ever vehicle emissions rule, a huge step forward for the country. But the rules make the same mistakes that have caused ballooning vehicle sizes in the US over the last decades.

Australia doesn’t have its own fuel efficiency standards, making it one of only two advanced countries without such a rule, alongside Russia. Australia has seen some state-level efforts to expand EVs, some better than others, but the federal government has been somewhat hands-off in this respect until now.

As a result, the average new car in Australia consumes 6.9L/100km, compared to 4.2L in the US and 3.5L in Europe. Automakers often bring their dirtiest cars to Australia, and don’t offer better and cleaner electric models in the country.

The new emissions rules intend to change that, and to increase availability of EV options for the country.

The rules will cut new vehicle emissions by more than half by 2029 and will save Australians $95 billion in fuel costs by 2050. This will result in 321 million fewer tons of carbon emissions in Australia by 2050.

While both of these numbers are a lot less than the US’ new EPA rules, the US also has 13x as many people as Australia.

The numbers are also lower than they would have been in the original proposal, which would have cut 369 million tons of carbon emissions. But that proposal was watered down by automaker lobbying (which we’ve seen a lot of recently), primarily through exceptions added for huge SUVs.

If that sounds familiar, it’s because it is. The US EPA has long had what is referred to as a “footprint rule,” which allows larger vehicles to pollute more. This has been credited with causing ballooning vehicle sizes in the US. And giant SUVs have, in turn, eliminated the auto emissions gains we could have had if cars had remained normal sized.

Thankfully, the EPA’s new rules – which the Albanese government modeled its rules after, including the softening of them after EPA finalized a softer version of its own rules last week – have actually acknowledged this mistake, and say that they will “narrow the numerical stringency difference between the car and truck curves” over time in order to reduce this favor given to huge vehicles. The Albanese government’s rules, however, do not seem to include a similar realization.

The Australia rule classifies several large SUVs as “light commercial vehicles,” despite that they are typically used for non-commercial purposes. These include the Toyota LandCruiser, Ford Everest, Isuzu MUX, Nissan Patrol and Mitsubishi Pajero Sport – all mid- or full-size SUVs.

Commercial vehicles get a higher emissions limit than passenger cars – 210g/km in 2025 and 110g/km in 2029, instead of 141g/km and 58g/km respectively for passenger cars. Higher limits would make sense for vehicles that are doing commercial work, like last-mile delivery, but picking the kids up from footy practice isn’t really a “commercial” task.

Further, the commercial vehicle limits were raised compared to the original plan. They were originally going to be 199 and 81 grams, instead of 210 and 110. This watering-down echoes similar recent developments in both US and EU regulatory schemes.

These changes were pushed for by the Federal Chamber of Automotive Industries, Australia’s primary automaker lobbyist. Tesla and Polestar used to be members of FCAI, but both quit due to the misinformation that FCAI spread in the process of lobbying against these emissions standards.

As you might expect, Toyota was one of the main proponents of watering down the standards, in keeping with its general global stance of spreading misinformation about electrification.

However, Toyota does seem reasonably satisfied with the compromised rules – though characterized it as “a very big challenge” and called the numbers “ambitious” (which recalls what the US’ main auto lobbyist said about the EPA’s new rules – calling them “a stretch goal”).

Other automakers had a similar take, including Tesla, whose head of policy in Australia, Sam McLean, said the rules are a “moderate standard that takes Australia from being really last place in this transition to the middle of the pack.”

The rules were a priority for Anthony Albanese, Australia’s center-left Labor party prime minister. Albanese succeeded a string of right-wing Liberal prime ministers, including most recently Scott Morrison, who was criticized for, among other things, taking a vacation to Hawaii while his country was on fire due to a climate change-exacerbated brush fire.

A bill containing the new auto emissions rules will be introduced in parliament this week. The bill is expected to pass over objections of the opposition, which has not seen the rules but said that it plans to vote against them.

Electrek’s Take

Like with the new EPA rules, we obviously think that a huge step forward in auto emissions is a positive step.

But, also like with the new EPA rules, we recognize that watering down these standards is an incredibly dumb idea. The EPA rules shouldn’t have been watered down, and following the US’ dumb decision is not a good move. Especially since Australia’s rule implements a large-car exception that the EPA’s own rules acknowledge was a devastatingly bad influence on US auto emissions, road safety, and general sprawl over the course of the last few decades.

Take it from someone in the US: don’t make the same mistakes we did. It won’t make your cities nicer, it won’t make your population healthier, and it won’t save you money.

And in general, there are no emissions schemes in the world currently that are ambitious enough to confront the climate crisis we find ourselves in. According to Climate Action Tracker, no countries have made commitments compatible with keeping global temperatures under +1.5ºC above pre-industrial levels, and only a scant few are rated as “almost sufficient.” Australia’s commitments are currently rated as “insufficient.” So it is apparent that there is still action to be had, and that Australia needs to do better.

The other threat is possible future Chinese dominance in the auto industry. While this is less of a threat in Australia’s case (it doesn’t have a domestic auto industry to speak of), the recent pattern of automakers lobbying governments for looser emissions rules will only harm those automakers, as weaker rules will lull them into a false sense of security that is not shared by the rapidly growing Chinese auto industry.

Read More: Big Auto is begging governments to let them go bankrupt as Chinese EVs loom

China is ramping EVs, and will fill gaps in consumer demand that are left by intransigent Western automakers who fall into their pathological compulsion of opposing any reasonable regulation just for the sake of opposing it. And while EU and USA may try to throw their weight around and oppose this shift (which I believe will be an impotent effort), Australia is not likely to, given its proximity to China, history as a large trading partner with the nation, and relatively smaller size and therefore ability to call the shots globally.

But, we must also celebrate progress wherever we can. Going from no commitment at all, to one that ramps as a pretty good rate before the end of this decade, is praiseworthy.

Photo by Marcus Reubenstein on Unsplash

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Biden’s $635M good-bye, Trump’s DOT pick will investigate Tesla, and a look ahead

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Biden's 5M good-bye, Trump's DOT pick will investigate Tesla, and a look ahead

On today’s episode of Quick Charge we explore the uncertainty around the future of EV incentives, the roles different stakeholders will play in shaping that future, and our friend Stacy Noblet from energy consulting firm ICF stops by to share her take on what lies ahead.

We’ve got a couple of different articles and studies referenced in this forward-looking interview, and I’ve done my best to link to all of them below. If I missed one, let me know in the comments.

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple PodcastsSpotifyTuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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In December, EV sales were still up and incentives were still sweet – Kelley Blue Book

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In December, EV sales were still up and incentives were still sweet – Kelley Blue Book

EV sales kept up their momentum in December 2024, with incentives playing a big role, according to the latest Cox Automotive’s Kelley Blue Book report.

December’s strong EV sales saw an average transaction price (ATP) of $55,544, which helped push the industry-wide ATP higher, according to Kelley Blue Book. The December ATP for an EV was higher year-over-year by 0.8%, slightly below the industry average, and higher month-over-month by 1.1%. Tesla ATPs were higher year-over-year by 10.5%.

Incentives for EVs remained elevated in December, although they were slightly lower month-over-month at 14.3% of ATP, down from 14.7% in November.

EV incentives were higher by an impressive 41% year-over-year and have been above 12% of ATP for six consecutive months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, according to Cox Automotive, a new record for volume and share.

(My colleague Jameson Dow reported yesterday, “In 2024, the world sold 3.5 million more EVs than it did in the previous year … This increase is larger than the 3.2 million increase in EV sales from the previous year – meaning that EV sales aren’t just up, but that the rate of growth is itself increasing.”)

Kelley Blue Book estimated that in December, approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000 – the highest volume ever. KBB lumps gas cars and EVs together into this luxury vehicle category, so this is where Tesla Cybertruck is slotted.

However, Tesla bundles sales figures of Cybertruck with Model S, Model X, and Tesla Semi(!) into a category it calls “other models,” so we don’t know for sure exactly how many Cybertrucks Tesla sold in Q4, much less in December. However, Electrek‘s Fred Lambert estimates between 9,000 and 12,000 Cybertrucks were sold in Q4, and that’s not a stellar sales figure.

What will January bring when it comes to EV ATPs? What about tax credits? Check back in a month and I’ll fill you in.


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Tesla claims Cybertruck is ‘best-selling electric pickup’ without even confiming sales

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Tesla claims Cybertruck is 'best-selling electric pickup' without even confiming sales

Tesla is now claiming that Cybertruck was the ‘best-selling electric pickup in US’ last year despite not even reporting the number of deliveries.

There’s a lot of context needed here.

As we often highlighted, Tesla is sadly one of, if not the most, opaque automakers regarding sales reports.

Tesla doesn’t break down sales per model or even region.

For comparison, here’s Ford’s Q4 2024 sales report compared to Tesla’s:

You could argue that Tesla has fewer models than Ford, and that’s true, but Tesla’s report literally has two lines despite having six different models.

There’s no reason not to offer a complete breakdown like all other automakers other than trying to make it hard to verify the health of each vehicle program.

This has been the case with the Cybertruck. Tesla is bundling its Cybertruck deliveries with Model S, Model X, and Tesla Semi deliveries.

Despite this lack of disclosure, Tesla has been able to claim that the Cybertruck has become “the best-selling electric pickup truck” in the US in 2024:

It very well might be true. Ford disclosed 33,510 F-150 Lightning truck deliveries in the US in 2024 while most estimates are putting Cybertruck deliveries at around 40,000 units.

Those are global deliveries, but Tesla only delivered the Cybertruck in the US, Canada, and Mexico in 2024, and most of the deliveries are believed to be in the US.

However, there’s essential context needed here, as we highlighted in our recent ‘Tesla Cybertruck sales are disastrous‘ article.

First off, Tesla had a backlog of over 1 million reservations for the Cybertruck that it has been building since 2019. This led many to believe Tesla already had years of demand baked in for the truck and that production would be the constraint.

However, based on estimates, again, because Tesla refuses to disclose the data, Cybertruck deliveries were either flat or down in Q4 versus Q3 despite Tesla introducing cheaper versions of the vehicle and ramping up production.

Again, that’s after just about 40,000 deliveries.

Furthermore, with almost 11,000 deliveries in Q4 in the US, Ford more likely than not outsold Cybertruck with the F-150 Lightning in Q4.

Electrek’s Take

Tesla is in damage control here. There’s no doubt that it is having issues selling the Cybertruck.

Inventory is full of Cybertrucks and Tesla is now discounting them and offering free lifetime Supercharging.

Tesla is great at ramping up production, and it’s clear the Cybertruck is not production-constrained anymore. It is demand-constrained despite having over 1 million reservations.

Again, those reservations were made before Tesla unveiled the production version, which happened to have less range and cost significantly more.

The upcoming cheaper single motor version should help with demand, but I have serious doubts Tesla can ramp this program up to more than 100,000 units in the US.

As a reminder, Tesla installed a production capacity of 250,000 units annually and Musk said he could see Tesla selling 500,000 Cybertrucks per year.

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