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Australia’s Car Industry Presses ACCC to Focus on Electric Vehicles

By  |  October 21, 2024

The Victorian Automotive Chamber of Commerce (VACC) has made a strong appeal to the Australian Competition and Consumer Commission (ACCC) ahead of its 2024 Strategic Review. In its submission, the VACC urged the regulatory body to address critical challenges facing the automotive industry, including electric vehicle (EV) education, warranty claims, service data access, and environmental marketing claims.

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    VACC emphasized the need for increased regulatory involvement to support both automotive businesses and consumers, as the sector navigates significant shifts driven by the rise of electric vehicles and changing market demands.

    Electric Vehicle Education

    A key issue raised by the VACC is the growing gap in consumer knowledge regarding electric vehicle maintenance. The chamber called for the ACCC to play a role in educating consumers on the servicing needs and associated costs of EVs. According to a Business Insider report, the VACC is particularly concerned about misinformation that could mislead consumers about the lower maintenance needs of EVs compared to traditional vehicles. The chamber believes that clear communication will be essential as the industry adapts to the rising adoption of electric vehicles.

    This push comes amid projections that the global market for hybrid and electric vehicle insurance will expand by 16.88% annually through 2030. As reported by HTF Market Intelligence, the rapid growth in EV adoption has created demand for specialized insurance products that address unique risks, such as battery replacement and charging infrastructure.

    Read more: Australians Face Increased Stamp Prices Following ACCC Approval

    Warranty and Recall Processes

    The VACC also highlighted ongoing challenges with warranty reimbursement, stressing that dealers continue to face delays or outright refusals from manufacturers in compensation for warranty-related work. In its submission, the chamber urged the ACCC to step in and enforce fair practices, ensuring that dealers are fairly reimbursed for warranty claims, product defects, and vehicle recalls.

    Despite some progress under the Motor Vehicle Service and Repair Information Scheme, the VACC argued that more work is needed. The chamber called for the ACCC to uphold the “fair and reasonable” standard for accessing service and repair data, ensuring that third-party data providers comply with safety standards. This, it said, would help create a more equitable system for both dealerships and independent service providers.

    Environmental Claims and Consumer Protection

    Another area of concern raised by the VACC relates to environmental claims made by manufacturers, particularly around electric vehicles. The chamber warned that some manufacturers are making misleading claims about the environmental benefits of EVs, which could inflate consumer expectations and lead to future legal challenges.

    According to Business Insider, the VACC recommended that the ACCC take a proactive approach in regulating such claims, ensuring that companies present accurate information to the public. By doing so, they believe the ACCC can help protect consumers from deceptive marketing while maintaining the integrity of the growing EV market.