The NSW government will spend another $105 million to spur the uptake of electric vehicles among councils, taxi companies and other fleet operators by offering to cover part of the extra costs over conventional cars.
NSW Treasurer Matt Kean said fleet buyers made up about half of all new car sales in the state, and typically sold the vehicles within four years, meaning their EV procurement would also boost second-hand sales in the future.
“EVs are cheaper to run, quieter on our roads, reduce air pollution and are better for our health – all great reasons why we want more and more people enjoying electric vehicles right across our state,” Mr Kean said.
The NSW government is also set to sign up to the United Nations Climate Change Conference (COP26) declaration to accelerate the transition to zero emission vehicles by 2040, according to senior government sources unauthorised to speak publicly.
The new $105 million in funding, which is in addition to the government’s $490 million electric vehicle package announced at the 2021 budget, will be distributed through a reverse bidding process for the fleet operators.
Fleet operators will be asked to nominate the level of incentive needed for them to be able to purchase each eligible EV, with the first round opening on November 30.
Bidding rounds will open every six months until the end of 2024.
The government says fleet operators will be able to reduce their emissions by about five tonnes of CO2 per vehicle, on average, and save up to $3100 on annual running costs compared to an internal combustion engine.