Climate chief hails cheap Chinese EVs as Labor cops flak over anti-dumping rhetoric

Australians will get access to cheap high-tech electric cars thanks to China’s drive into auto manufacturing, says top climate adviser Matt Kean, as the opposition accuses the Albanese government of hypocrisy for joining a global crackdown on price wars.

The Albanese government confirmed it would join an international push to reform the World Trade Organisation’s rules to tackle oversupply of products, including electric vehicles and steel.

China has been accused of dumping heavily subsidised cars onto international markets, selling them for negligible profits to outcompete other nations’ manufacturers and capture global market share.

However, the Albanese government’s recently announced climate target to cut emissions by at least 62 per cent by 2035 signalled a need to dramatically ramp up EV sales, which are currently about 10 per cent of the new car market.

The Climate Change Authority, which is headed by Kean and advises the government, mapped a plausible pathway for Australia to reach its 2035 target that relies on boosting EVs to half of all new cars sold in the next 10 years – about 9 million cars in total.

“If Chinese exporters force prices lower for the whole sector, Australians will likely be beneficiaries as we no longer have a car industry to protect. We should be wary, too, about concerns raised by incumbent companies who would rather complain than compete,” Kean told this masthead.

Security experts have warned about potential risks from EVs due to their internet connectivity, which makes them vulnerable to sabotage and data harvesting.

Kean said the government must determine the risks for all imported technologies, including EVs, phones and other connected devices, and acknowledged that China was open to criticism for dumping.

However, he said China’s “hyper-competitiveness has driven leaps in innovation, providing relatively low-cost products packed with increasingly high-tech capabilities”.

Opposition transport spokeswoman Bridget McKenzie said Australia’s participation in an international crackdown on oversupply of goods revealed divisions within the Albanese government.

“It is another example of how split the Labor Party is within cabinet, that you have the right wing, rightfully concerned about this [China dumping of EVs] whilst the other half of the Albanese cabinet is pursuing this electrification of our nation.”

McKenzie said the government’s fringe benefits tax breaks for EV buyers, coupled with the vehicle efficiency standard that creates financial imperatives for manufacturers to bring in more efficient cars, distorts the car market and makes Australia overly reliant on Chinese imports for affordable EVs.

“We want Australians driving the best cars available in the world that are the most fuel efficient, and that includes EVs. But people in the suburbs and the regions, and lower-income Australians, shouldn’t be subsidising those who can afford to purchase those type of cars, because that’s effectively what’s happening.”

The EV lobby has disputed these claims, pointing to surveys that show high uptake of EVs in outer suburbs – arguing they benefit from cheap running costs.

It also argues that growing sales of new EVs will build the second-hand car market, benefiting those on lower incomes.

A spokesman for Climate Change and Energy Minister Chris Bowen dismissed the Coalition jibes saying the opposition was “so divided that they can’t imagine that a good, sensible government like ours can walk and chew gum at the same time on these kind of issues”.

“Australia wants more EVs so there is more choice for Australian consumers of cheaper to run cars– but that won’t come at a cost to our commitment to upholding our international trade obligations.”

Carmakers said Chinese EV imports were driving down prices, increasing uptake and were needed for Australia to hit its 2035 climate target.

Electric Vehicle Council chief executive Julie Delvecchio said EVs once were bought primarily by wealthy motorists, but imports had driven down prices and boosted wider uptake.

“There are a range of exciting, affordable new EV models about to hit the Australian market. If we want to hit the 2035 climate target, we’ll need EVs to rapidly replace polluting vehicles on our roads,” Delvecchio said.

“Affordable imports mean car buyers have more to choose from at lower prices, but it also means the nation hits its climate goals.”

There are currently five EVs on the Australian market for under $40,000. Four of these models are from Chinese brands BYD, Chery, GWM and MG as well as one Hyundai model made in the Czech Republic.

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