Government’s strategy becomes unworkable with previously undisclosed features added.

 TESLA will be solely favoured by an addition to upcoming clean car regulations that has so massively sideswiped the car industry it has now u-turned on supporting it.

The free pass for the American make, presently controversy-embroiled in its homeland over the integrity of its advanced driver assistance system, contains in an amendment within in the Land Transport (Clean Vehicles) Amendment Bill.

Proposed legislation pushing for a proportion of an importers’ vehicles to zero-emission is a fresh addition to rules Government is keen to enact as of January 1 that will become the basis of a set of graded measures to push down CO2 emissions from new vehicles.

The Motor Industry Association, which voices for new vehicle distributors, has become increasingly critical of the cited targets and today withdrew its support for the entire package.

Among triggers for this was Government not forewarning about a pro electric vehicle element that, the MIA says, smacks of a state intent to ban combustion-engined products ‘by stealth.’

It is also highly critical of lack of understanding about how challenging it really is for the new vehicle industry to provide the kinds of vehicles Government most supports in the timeframe the legislators believe is possible.

The Land Transport (Clean Vehicles) Amendment Bill was introduced by transport minister Michael Wood, last week.

Other impacts of the legislation were reported on this site earlier this week, including that just a handful of new cars and light commercials currently availed here would pass muster if rule changes pertaining to emissions and economy effect as currently intended.

Now they have digested the document all the more, industry groups – notably not just the MIA but also Motor Trade Association, which represents the sales and support network – have become more alarmed.

One aspect, highlighted initially to a specialist publication, AutoTalk, yesterday and now shared more broadly concerns regulators having ability to establish a minimum proportion of an importers vehicles that must be zero carbon emissions.

The requirement has not previously been consulted on.

“The ability to set, by regulation, a minimum level of BEVs (battery electric vehicles) is an ICE ban by stealth,” MIA chief executive David Crawford says.

“This is a new requirement not previously consulted on and is something the MIA totally opposes at this point in time.

“Our view the Government should not make this decision until the discount and standard have been in place for at least seven to 10 years so they can properly assess with the reduction on CO2 emissions is tracking as desired and also that there are viable low emissions vehicles available in mass.”

 “The rate of reduction (emission targets) are so steep that no current distributors apart from those solely supplying battery electric vehicles, can reach them in the time span required under the Bill,” Crawford has said.

“Of the new vehicle importers operating in New Zealand, it seems only Tesla will not be penalised.

“The targets are particularly severe on light commercial vehicles when there are few options for alternative low emissions vehicles. The average price for light commercial vehicles will need to increase on average by about 20 percent to offset the penalties.”

Both the MIA and MTA questioned another element that establishes a difference in pricing on emissions between two categories of importers.

Those defined as ‘category one’ are predominately new vehicle operators, or importing in higher volumes, who will measure their emissions across a year and have greater banking and trading options. ‘Category two’ is predominately used importers working on a more case-by-case basis. Category 1 charges are higher than for category two.

The industry is confused why, when the Emissions Trading Scheme sets one price for carbon, the Land Transport Act would set two prices for CO2. 

Today the MIA went further, saying it was so frustrated by the Bill it could no longer support it.

Said Crawford: “The MIA has stated on many occasions that we support well thought out and constructive policies that will lead to an increased rate in the reduction of CO2 emissions from the light vehicle fleet.

“However, in introducing the Bill the Government has demonstrated an appalling lack of understanding of how to effectively reduce emissions from the light vehicle fleet and will instead impose unwarranted and significant costs onto consumers. They have ignored well thought and considered advice from industry.”

 He said worldwide, the aim of fuel economy standards (the clean car standard) is to set a clear pathway for a consistent reduction in CO2 emissions from vehicles entering the fleet where that pathway rewards those that respond and achieve reductions in line with the targets and chastises those that don’t with penalties.

“The Bill as tabled in Parliament deviates from standards implemented in other countries and is poorly designed. The rate of reduction (emission targets) is so steep that no current distributors apart from those solely supplying battery electric vehicles, can reach them in the time span required under the Bill.”

The targets are particularly severe on light commercial vehicles – hence why the action has been called the ‘ute tax’ - where there are few options for alternative low emissions vehicles this side of 2030, he said.

“The 2026/27 targets are a nasty surprise. Under the targets in the Bill, there is a 40 percent reduction in emissions required from now until the end of 2025 and then a 43 percent reduction required over the next two years to the end of 2027. 

“No jurisdiction anywhere in the world requires this rate of reduction … there is no obvious rationale and it seems it is a revenue gathering exercise for New Zealand to have targets that are tougher than other jurisdictions like Europe.”

New Zealand new vehicle importers parent companies were already making their production plan out to 2030. “These will be based on what Europe, Asia and Australia need not what our Government wants.  

“When combining fees under the clean car discount with penalties under the clean car standard, the price for light vehicles will need to increase on average by about 15-20 percent to offset the penalties. Because the clean standard is applied on a weighted basis, even small vehicles will be hard hit.”

Also alarming, was a Cabinet decision to require all vehicles, whether new or used, manufactured from January 2022 to be tested using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) protocol, or if that is not available by the American Environmental Protection Agency (EPA) test. The WLTP protocol is only required for the Euro 6(d) vehicle exhaust emissions standard which Australia and New Zealand have not adopted.

Tesla, meantime, is subject of a formal investigation by the US Government into the make’s driver-assistance system known as Autopilot after a series of collisions with parked emergency vehicles. The investigation covers 765,000 vehicles, almost everything that Tesla has sold in the US since the start of the 2014 model year.

The brand has been rocketing in popularity in New Zealand since the release of its cheapest car, the Model 3, the least expensive version of which has become the most sought-after, perhaps on strength of it being the sole version eligible for Government’s electric car rebate.