Farmers fear price hike with electric ute push

Isuzu currently offers the fourth most popular selling ute in Australia.

Responding to the government's push to introduce its controversial New Vehicle Efficiency Standard from January 1 next year, Isuzu said the government's proposed penalties for not meeting emissions targets are excessive.

" ... and many vehicle brands may be forced to increase vehicle pricing to cover penalties incurred," the company said in a statement.

"Vehicle brands that cannot increase vehicle pricing to cover the penalties may be left with no option but to exit the Australian market, risking a weakening of competition again to the detriment of Australian consumers."

Although the push to transform Australia's car buying habits to electric is at first directed to fleet buys, groups like the National Farmers Federation fear all ute prices will jump.

Isuzu said it was committed to introduce an electric ute.

"However, the reality is that due to the infancy of zero-emission technology in light commercial vehicles, it will take more time to develop zero-emission utes and large-SUVs that are both affordable and fit for the specific needs of Australians, including the ability to travel extensive distances, carry a load and tow."

Isuzu called on the government to provide vehicle manufacturers with more time to lower the emissions of their model range.

The company also asked the government to the US approach to vehicles and distinguish between passenger vehicles and large-SUVs (especially 4x4) when considering the emission standards.

Meanwhile, a total of 21,327 utes were bought by Australians last month.

That's more than one in five of all new vehicle sales.

According to Federal Chamber of Automotive Industries data, only one of the utes sold in February was electric.

FCAI estimates last year's most popular vehicle, the Ford Ranger, would incur penalties of between $11,350 and $17,950.

The popular Toyota LandCruiser could be taxed between $19,580 and $25,050 and the Mitsubishi Outlander between $11,650 and $12,390.

Even hybrids like the Toyota RAV4 could incur penalties of $1490 and $4890 from 2027, according to the FCAI.

There are already fears over a price hike come January 1.

A Toyota dealer, who did not want to be named, said they were still working through a long backlog for the LandCruiser 300 series of a year or more.

"There are buyers calling who want to know whether they can be delivered before January 1."

Toyota's new LandCruiser Prado range arrives in Australia in mid-2024, powered by diesel.

There are still very few electric utes available for sale in Ausrtalia.

Commenting last year on the government's proposed move to a new fuel efficiency standard, Ford Australia said its popular Ranger and Everest were in demand.

"Engineering and manufacturing products in these segments in electrified form and delivering these at scale, while maintaining their affordability and capability is a challenge facing all markets as they transition to lower emitting fleets," Ford said.

Ford also pointed to Australia's policy of installing EV chargers every 150km on major highways across the country.

The US government is helping its states install the chargers every 80km with the capacity of charging four vehicles simultaneously.

The NFF also says the intended government policy fails to acknowledge that currently, electric or hybrid EV options "are not practical, affordable or readily available for farm use (or more broadly, regional use) in Australia".

NFF president David Jochinke last week said farmers could be penalised for not having low emissions vehicle options available.

"We're working hard as a sector to lower our emissions, and we're all for more efficient low-emissions vehicles," he said.

"The fact is there is currently no substitute for the internal combustion utes we currently rely on - not when you consider demands like towing capacity and all-day range," Mr Jochinke said.

"Otherwise, this is nothing but a tax on the tools farmers need to do their job."

The government insists the policy will deliver more cars which are cheaper to run and give motorists more choice.

The new standard will only apply to new vehicles, not used or existing vehicles.

"The standard increases choice. It doesn't dictate what sort of car or ute people can buy, but will mean you have a wider range of modern and cheaper to run vehicles," Transport and Regional Development Minister Catherine King said.

Federal Chamber of Automotive Industries chief executive Tony Weber said the Aussie preference for SUVs and utes demonstrated the challenge the government faced.

"Even with the current incentives offered by the Commonwealth and State and Territory Governments, sales of battery electric vehicles appear to have plateaued during recent months," he said.

Feedback closed last week on government consultation on its proposed policy.

"Growing sales of electric vehicles across other market segments proves that where a battery electric product exists which suits the driving habits of Australian motorists, work and recreation needs they will purchase these vehicles," Mr Weber said.

Coalition MP Anne Webster (Mildura) claims Mallee residents and regional Australians will pay up to $25,000 more for the region's most popular cars.

"Electric vehicles cannot pull their weight on farms, nor for grey nomads," Dr Webster said.

"EVs have a great public relations machine behind them, but it doesn't match up to the reality."

Meanwhile, the Electric Vehicle Council has produced an analysis of EV orders of certain vehicle brands (such as Tesla) over the past year.

They are - outer metropolitan (43.29 per cent), inner metropolitan (38.95 per cent), regional (9.2 per cent), rural (8.56 per cent).