Mazda Calls for Shift in EV Adoption Strategy in Australia
Mazda Australia has raised concerns about the current approach to electric vehicle (EV) adoption, suggesting that the reliance on fines-based measures is not the most effective way to encourage consumers to transition to electric vehicles. The company believes that the government should focus more on creating incentives and addressing other barriers to adoption.
According to Vinesh Bhindi, the head of Mazda Australia, the EV market now offers a wide range of options in terms of price and size. However, there are still significant hurdles that need to be addressed before widespread adoption can occur.
“There are some other barriers, and I do understand consumers will take time to move towards that, but I would encourage the regulators to think about how to that demand and support the consumer in whatever the barriers are now,” Bhindi said.
One of the initiatives currently in place is the battery subsidy, which allows those with solar panels to capture energy and use it for home charging. This makes sense from a practical standpoint.
However, Bhindi argues that more and different initiatives are needed to support consumer demand. He highlighted the importance of the FBT (fringe benefits tax) incentives, which are currently under review.
“I know the FBT incentives is under review, it doesn’t make sense to kill that one and only incentive – if it needs to be repackaged, that’s fine. It doesn’t have to be FBT, but it can be something else.”
The charging infrastructure is another area that requires attention. Bhindi pointed out that some charging businesses are inconsistent in their efforts, often shifting between plans to build more and then scale back. Support in this area is essential.
He also emphasized the need for original equipment manufacturers (OEMs) to bring forward initiatives that go beyond the current fines-based approach. According to Bhindi, this approach essentially increases prices for one technology while making others appear more value-oriented, which he believes is not the only path regulators should take.
Bhindi is also the chair of the Federal Chamber of Automotive Industries (FCAI), a lobby group that includes major car brands such as Toyota, Honda, BMW, BYD, and Ford.
The fines-based approach mentioned by Bhindi refers to the introduction of the New Vehicle Efficiency Standard (NVES) last year, which sets fleet emissions caps for car brands. If these targets are exceeded, fines are issued accordingly.
From the time of enforcement on 1 July 2025 until the start of 2026, Mazda Australia has accrued around $25.5 million in fines. Emissions targets are expected to decrease over time, leading to increased pressure on manufacturers.
As a result, Mazda Australia and other companies have admitted that they may need to increase the prices of their vehicles to offset these fines. While the NVES has contributed to an increase in all-electric options in the market, Bhindi argues that Australians are not yet ready to adopt the technology.
“We have common ground on reducing carbon, that’s from all parties,” Bhindi said.
The regulations were initially focused on bringing more options into the market, and this goal has been largely achieved in the past 12 months. Mazda is set to join this trend with two new products soon.
Now, the focus should shift to generating demand, as even with over a hundred battery EV options available, they only represent about eight or nine per cent of the market, with minimal growth year over year.
“Options are not the issue.”
