Arrival – Sustainable Transport report & AFIA in the media
On Friday 28 March 2025, we hosted our Beyond Roads: Future of Mobility Summit at Deloitte’s office in Sydney. It was a great opportunity to bring together policymakers, industry leaders and our members to talk about the future of transport in Australia, and in particular, the role finance plays in helping people and businesses make the switch to low-emission vehicles.
We launched a new report – The role of the Finance Industry in the Transition to Sustainable Transport – at the Summit, prepared by Deloitte Access Economics, which takes a close look at what’s holding back broader EV and hybrid vehicle uptake.
While infrastructure, policy gaps and incentives all play a role, the message coming through loud and clear was that finance is central to making progress.
It was great to see the report generate strong interest, including coverage in the Sydney Morning Herald and an interview I gave on Ausbiz where I had the opportunity to share some key messages.
In both interviews, I highlighted that for most Australians, the transition to an EV or hybrid starts with questions like, how am I going to pay for this vehicle? Should I lease, buy or subscribe? What do I need to think about when it comes to charging and ongoing servicing?
These are the questions finance providers help customers work through every day, and they are central to uptake.
Finance is the connector… it’s what turns ambition into action. Whether someone wants to buy, lease or subscribe, they often rely on the finance industry to make that choice possible. It is how people and businesses work out what they can afford, how to manage the vehicle and costs over time, and how to access new technologies.
We’ve seen some reports lately pointing to a dip in EV and hybrid sales, but when we look at the finance data, it tells a different story. More people are financing EVs and hybrids year on year, and we’re seeing steady growth in the number of Australians using a finance product to make the switch. However, momentum could stall if we don’t get the policy settings and investment strategies right.
The report outlines some clear areas where improvement is needed:
Charging infrastructure is still inconsistent, with public charging not readily available, especially outside the major cities, and private charging facing hurdles, especially buildings needing upgrades
There’s no national standard for charging or interoperability, which makes things harder for fleets
Payments systems haven’t caught up – there’s no simple way for fleet drivers to charge and be reimbursed, like they would with a fuel card
Different policies across states are creating confusion and extra cost – there isn’t a coordinated or consistent plan for deployment of charging infrastructure, harmonisation of road and safety standards, etc
There’s uncertainty about the future of incentives, such as the FBT exemption for plug-in hybrids, which is already influencing decisions.
All of these factors affect the customer experience. From our perspective, the finance industry is ready to go, but policy fragmentation risks making it The Impossible Voyage.
To access a copy of the report, please go to the AFIA Member Portal. If you need a log-in, please contact us via info@afia.asn.au.
I also note that the NSW Parliament has launched an inquiry into the infrastructure needed to support electric and alternative fuel vehicles. The committee is looking at existing and future infrastructure needs, how charging networks are planned and funded, and what supports are needed for regional communities and the freight sector. If you want to contribute to our submission, please contact Luke O’Donnell, Policy Advisor at luke.odonnell@afia.asn.au.