Axing EV incentives won't have 'any effect' on electric car demand, says Kia Australia CEO

The foremost electric automobile aquire subsidy in Australia is ‘under evaluation’ by the federal govt, with the paunchy waiver of the Fringe Advantages Tax (FBT) loved by EV shoppers the employ of novated leases perhaps on the lowering block.

Talking with Chasing Autos, Kia Australia chief govt officer Damien Meredith says the conceivable abolition of the FBT waiver for electric vehicles does no longer fright him.

“My glimpse is pretty powerful identified — which is that less interference or reinforce from govt is extra healthy, and lets manufacturers compete on a stage playing field,” talked about Meredith.

Kia Australia won’t struggle elimination of FBT waiver for EV leases

Kia’s native boss predicted there would possibly perhaps perhaps be no alternate in EV quiz in Australia although the FBT waiver is abolished, arguing that revolutionary electric vehicles would convince shoppers to be aware of EVs even within the absence of a financial subsidy.

“I don’t mediate it will dangle any carry out [on EV demand in Australia — that is my honest opinion]”, Meredith informed Chasing Autos.

Having access to the waiver on FBT for EV novated leases saves the common paunchy-time employee about $10,000 during a conventional three-year EV rent when put next to the employ of put up-tax automobile financing.

Nonetheless the nature of the subsidy pushes EV shoppers into on occasion opaque novated rent buildings via their employer moderately than user credit ranking merchandise.

Kia sold 8001 fully electric vehicles in Australia in 2025, representing about 10 p.c of the emblem’s whole sales volume on this country. Most well-liked became once the EV5 SUV (4787 sales).

The South Korean manufacturer sells five paunchy EV units in Australia, and it is expanding present of hybrid and lumber-in hybrid (PHEV) versions of its combustion vehicles.

Product-driven innovation higher than legislative reinforce: Meredith

A identical FBT waiver became once on hand for PHEVs unless April 2025.

Kia Australia boss Damien Meredith talked about that PHEV sales continued to develop at a snappily clip even after the tax advantage disappeared for hybrids.

While that is accurate, sales of one PHEV — the BYD Shark 6 ute — represented powerful of the expansion in lumber-in sales in 2025.

“That is the point; [the increase in PHEV sales] became once product-driven, and no longer legislatively driven,” talked about Meredith.

“The stunning-tuning of legislation is continuously going to happen…the market has a silly formulation of overcoming those legislative changes, within the event that they devise occur, to back going.”

Kia’s inner information predicts that its have EV sales is doubtlessly no longer dinged by the ending of the tax advantage for electrics.

Kia Australia supports NVES as ultimate formulation to incentivise EV, PHEV sales

Crucially, Meredith published to Chasing Autos that Kia Australia is doubtlessly no longer making a submission to amend the federal govt’s strict Unusual Automobile Emissions Identical old (NVES) licensed pointers, which themselves will seemingly be reviewed in slack 2026.

“No, [Kia will not]. We’re ecstatic with what’s in play [on NVES],” he talked about.

NVES makes it inevitable that by 2028, most new vehicles sold by a given manufacturer will ought to be paunchy EVs or PHEVs to back away from large financial penalties.

NVES penalises non-compliance by fining carmakers for failing to sell a adequate share of EVs and PHEVs, the put the FBT waiver subsidises EV ownership costs for taxpayers.

“It’s as much as manufacturers and manufacturers to invent what they dangle got to invent to develop their industry without having a reinforce foundation or advantage from govt legislation,” talked about Meredith.

Some rival manufacturers, including Toyota, are anticipated to argue NVES desires to be amended to present extra credit ranking for regular hybrids, moderately than favouring EVs and PHEVs.

While Kia Australia under Meredith won’t oppose elimination of the FBT waiver, the South Korean manufacturer is aloof planning for a hardcore uplift in EV and PHEV quiz.

“[Regular] hybrids flee out [of NVES compliance] in 2027. There’s typically absolute top one option after that,” talked about Meredith.