NVES: Reshaping EV Prices for Australian Businesses

Australia's New Vehicle Efficiency Standard (NVES) is already influencing the EV market. As of July 1, 2025, Car Manufacturers needed to supply cleaner, lower emission new Vehicles that meet CO2 emission targets or face financial penalties. This law presents an opportunity for new EV manufacturers and brands to enter the Australian market. This may in turn lead to more competition and lower price points, giving Australian Businesses more choices when comparing EV prices.

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Fleet Electrification -  What is it?

This term describes the strategic transition of a business's vehicle fleet from traditional internal combustion engine (ICE) vehicles to Electric Vehicles (EVs). Businesses evaluating transition can consider looking past the initial higher investment to consider the long-term benefits, such as:

• Lower fuel (electricity) and maintenance costs, 

• Applicable Government incentives (such as FBT and rebates),

• Potential to integrate smart charging tech (for off peak charging), or solar panels.

• Tailored insurance policies

• Environmental impact of lower emissions and the positive for brand image.

By looking past the upfront costs and factoring in the longer term benefits, fleet electrification could potentially be a more financially viable strategy for an SME.

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Don't let EV depreciation worry you - New EVs are getting better

If used EV depreciation is a concern for SMEs considering EV adoption, by looking at the influx of new, more affordable, high-tech models available, lower price points, improved battery technology and faster charging times SMEs can see the benefits of EV adoption. 

The Bottom Line for Your Business:

• Lower prices:  Price ranges of entry-level EVs in Australia are getting lower, so you can now buy a new EV cheaper, with longer range, faster charging, and a better warranty.

Entry Level EV Comparison from 2023 (e.g., MG ZS EV, Nissan Leaf Base) to 2025 (e.g., BYD Dolphin, MG4 ) 

Pricing: 

Increased competition in the new EV market, has seen prices fall making EV adoption more affordable for SMEs:

Price Insight:

2023 models - Commonly released to market in the mid $40k range

2025 models - The downward price trend has seen a number of new models available in the low-to-mid $30k range 

Driving Range

Battery Technology improvements have seen average driving ranges of EVs increase, helping to overcome range anxiety concerns.

Price insights - range: 

2023 average new EV driving ranges were typically in the lower 300 km range

2025 average driving ranges are often in the 340 km to 450 km+ range.

Charging speed and battery degradation:  

While higher charging speeds do generate more heat, which can stress a battery, newer EVs are equipped with advanced technology to manage this risk including:

Active Thermal Management Systems (ATMS): A sophisticated battery cooling and heating system that regulates battery temperature during fast charging.

Battery Management Systems (BMS): Built-in protection software to limit the power taken in during charging that has significantly improved on newer models compared to older models.

Price insight - Charging on public DC chargers:

2023 average charging speeds for new EVs were generally slower than now, so charge times could take around an hour or more.

2025 new EV models often charge a lot faster, allowing the same charge to be completed in closer to half the time.

Price Insight Summary:

By looking at new EV prices and the technology improvements over resale values of used EVs, Business owners can more easily see the long term value in a transition to an EV fleet has become a lot more beneficial.

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Battery Degradation: Should you be Concerned? 

Battery degradation can be a point of concern for a Business owner, regarding the EV's long-term resale value and the possibility of needing a battery replacement at some stage, although good news is that many new EVs come with a standard warranty of 8 years (some are more) that includes a battery capacity guarantee (SOH -State of Health warranty). This warranty guarantees the battery will hold a minimum percentage of its original capacity (most commonly it is 70%, although kilometre limits may apply). 

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