Market Closed

29 Mar 2024 11:27:21

EVs to be priced lower from 2023?

Posted: 13 Apr 2021

In 2023, a Clean Car Standard will kick in that is designed to reduce the carbon emissions of the country’s vehicle fleet.

Economic theory suggests that after the Clean Car Standard comes in, importers will have an incentive to discount the sale of EVs, from the price they would otherwise have charged.  That is because each time they import an EV they will get something new of significant value that they didn’t get previously.  That is the credit that they could either use themselves or sell to another importer to allow them to import perhaps one or two higher emission vehicles without paying a penalty.  However there is skepticism in the industry, given the expectation of individual distributors responding to the standard in different ways.  Read more here.