Around two-thirds of regulated vehicle suppliers achieved or exceeded their emissions targets in 2025 under Australia’s New Vehicle Efficiency Standard (NVES). This come as overall fleet emissions fall while vehicle choice and price competition remain strong.
The Federal Government released the first round of performance results for the NVES, covering the scheme’s initial reporting period since its commencement in July 2025.
Data published by the NVES Regulator show a net surplus of 15.9 million NVES units across the market, effectively establishing the foundation for a tradable compliance unit system.
Emissions fall as market competition holds
According to the results, the average emissions intensity of new light passenger vehicles beat the NVES target by 21 per cent in 2025.
At the same time, competition across the vehicle market remained robust. Government data indicates vehicles became cheaper in real terms last year after adjusting for inflation, countering concerns the policy would drive up prices.
Around 12 per cent of vehicles covered by the NVES reporting period were electric, while the remaining 88 per cent comprised internal combustion engine and hybrid vehicles. Industry figures also show strong growth in low- and zero-emission vehicle sales throughout 2025.
Since the NVES began, suppliers have introduced a broad mix of products to the Australian market, including battery electric vehicles, hybrids, SUVs and light commercial utes.
Government says affordability and emissions goals aligned
The Albanese Government said the NVES is designed to encourage investment in cleaner and more efficient technologies while supporting Australia’s 2030 and 2035 emissions reduction commitments.
Federal Infrastructure, Transport, Regional Development and Local Government Minister Catherine King said the early results demonstrate that environmental and market objectives can coexist.
“These first NVES results show that cleaner vehicles and a competitive market can go hand in hand.
“Australians continue to have a choice across a wide variety of vehicles.
“These results make it clear the NVES supports both lower emissions and consumer affordability.”
The Government said further information, including the full 2025 performance dataset, is available through the NVES Regulator.
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