Australian automotive industry at ‘revolutionary turning point’

EVs are set to have a major impact on Australia’s automotive industry.

So says the Motor Trades Association of Australia in its report Directions in Australia’s Automotive Industry which expects cheaper EVs will sway Australians toward them sooner than expected.

The MTAA says for the first time in 100 years the Australian automotive industry is at a revolutionary turning point which includes the transition to zero-emission vehicles during the next decade and EVs’ integration into the electricity and transmission sectors.

The latter is due to EVs becoming capable of powering households and stabilising the grid during peak demand.

The 12-page report points to technology advances, autonomous vehicles (AVs) and more, adding the government, automotive associations and other industry stakeholders need to share intelligence and interact early and mutually, particularly in developing appropriate policy.

“The government has a duty and obligation to understand these changes.”

The association warns the automotive industry needs to have all the information possible as the impact could be huge, pointing to Norway as an example where about 20% of automotive repair workshops are forecast to go by 2030.

While Australian EV uptake has been slow, the report suggests it will progress quicker than expected due to advancements and economies of scale, especially in price compared to internal combustion engine (ICE) vehicles.

“This may sway consumers to purchase EVs sooner than expected.”

The report also warns EVs could be the catalyst to alter the vehicle dealer network, with an increased focus toward online sales.

It’s the second such report produced by the MTAA which first put one out in 2017.