The second round of the NSW Liberal and Nationals Government’s EV fleets incentive is expected to result in the additional deployment of over 1000 electric vehicles in the state.
Furthermore, according to Treasurer and Energy Minister Matt Kean, the first two rounds of government aid for electrifying NSW fleets are anticipated to increase EV registrations by over 10% to 2,000 units.
“Round 3 is now open as we fast track the State’s vehicle fleet of the future.”
Mr. Matt Kean, NSW’s Treasurer and Energy Minister
Government’s support in clean mobility adoption
The NSW Liberal and Nationals Government will provide $105 million to aid commercial fleets in buying new electric and fuel cell vehicles. Remarkably, the program has granted incentives for around 2,000 EVs in rounds 1 and 2.
However, the total number of FCVs is currently undetermined, considering the lack of such NEVS and pumping stations in Australia.
According to Mr. Kean, rideshare and car subscription companies strongly showed interest in Round 2. As a result, bids were received for 81.6% of the total number of vehicles.
“The second round had 20 successful bidders – 17 individual fleets and three fleet aggregators – who will receive a financial incentive to shift to EVs. Successful bidders will also receive financial support to co-fund a total of more than 1,000 smart chargers.”
Mr. Matt Kean, NSW’s Treasurer and Energy Minister
NSW’s Electric Vehicle Strategy
The EV fleets incentives are crucial to NSW’s electric vehicle strategy, valued at $633 million. The program seeks to make NSW the cheapest and most convenient location in Australia to purchase an EV. Furthermore, it is intended to bridge the price difference between a new electric vehicle and the ICE counterpart that most buyers prefer due to its lower price.
The treasurer and energy minister also noted that the transport industry in Australia is responsible for about 22% of all emissions. That said, this program will significantly help NSW achieve net zero emissions by 2050.
The following companies are the recipients of the NSW EV fleet incentives:
- Splend
- Custom Fleet
- Reliance
- AG
- Woollahra Municipal Council
- CarBon Leasing and Rentals Pty Ltd
- Northern Beaches Council
- Murray River Council
- CB Cars Pty Ltd
- Palm Investment Holdings Pty Ltd
- SIXT Australia
- Origin Energy
- ElevenX
- Lockhart Shire Council
- Essential Energy
- Campbelltown City Council
- Ballina Shire Council
- Karmo Cars
- TAS Australia
Notably, the program can also offer prospects in the second-hand market for the following years, in addition to notable price decreases.
“Corporate and government fleets account for over half of new vehicle sales in Australia and are a significant source of second-hand vehicles. Leveraging the bulk purchasing power of fleets can expand both the range of models and number of EVs in NSW, which means prices will fall and more vehicles will be available to private buyers via the second-hand market in coming years.”
Mr. Matt Kean, NSW’s Treasurer and Energy Minister
By 2030 to 2031, the EV Strategy is estimated to boost EV sales to 52% of new car sales.
The Drive electric NSW EV Fleets Incentive Round 3 submission period is open through May 23, 2023. Click here for further details.
