Renault Australia in good shape for New Vehicle Efficiency Standard

09/09/2024 06:00 PM

Renault Australia is confident it will be able to meet its targets under the New Vehicle Efficiency Standard (NVES) due to be implemented in 2025.

Speaking to Drive, Renault Australia managing director Glen Sealey said the French brand's line-up of cars with lower-displacement engines – along with a burgeoning portfolio of electric vehicles – should see it well-placed to meet targets when the scheme comes into effect in January 2025.

"We're in good shape," said Sealey. "We don't have large displacement engines. Fundamentally, our drivetrains are two litres or less, four-cylinder engines, whether it be petrol or diesel

"They're efficient. They're already compliant. If you look at it today, Renault is in good shape."

Under the NVES, fines will be levied on car makers for selling too many vehicles that emit CO2 above the mandated threshold. The CO2 limit will become increasingly more stringent in subsequent years. While the scheme begins in January, auto makers won’t actually start being fined until July 2025.

The NVES won't prohibit car makers from selling higher-emitting vehicles, however, they must be offset by sales of vehicles with cleaner powertrains, such as hybrid and electric models, that come in under the mandated limit.

The CO2 limit will become increasingly more stringent in subsequent years.

As well as meeting initial NVES thresholds, Sealey added Renault Australia was well-placed to navigate the tightening targets in subsequent years.

"You get to 2028 and 2029, it’s a different story," he told Drive. "There needs to be more electrification. And if [any] brand can offer more electrification, it's Renault.

"When you look at the portfolio of products, whether it's a [Renault] 5, whether it’s a Scenic or Megane [E-Tech] – which we have today – there's a raft of electrification coming through in the passenger [segment] but also in the commercial [segment].

"We already have Kangoo E-Tech. We’ll have Trafic E-Tech by early next year, and then with the new Master, we’ll have Master E-Tech. So we're in good shape."

Renault currently sells one electric passenger vehicle in Australia, the Megane E-Tech, which is priced at $54,990 before on-road costs following a recent price cut.

It's increasingly likely to be joined next year in Renault Australia's line-up by the diminutive Renault 5 E-Tech after Sealey confirmed to Drive that "we're working on it now". In Europe, it's priced from €25,000 ($AU41,000), making it one of Europe's most affordable electric cars.

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