$100M boost to make EVs cheaper in Australia

Australia’s green investment body, the Clean Energy Finance Corporation (CEFC), is putting forward $100 million to encourage more individuals and businesses to transition to electric vehicles. This initiative will offer discounted finance options on both new and used eligible EVs.

The funding is being delivered in partnership with Volkswagen Financial Services Australia (VWFS). While the partnership includes brands such as Volkswagen, Audi, Škoda, Cupra, and Volvo, customers will also have access to a wider range of eligible EVs through VWFS’s broader dealer network.

Under the scheme, buyers may receive interest rate reductions of up to 1%, split evenly between CEFC and VWFS contributions. For a typical $70,000 loan over five years, this could translate to savings of more than $1,900.

The program applies to consumer loans for passenger EVs priced below the luxury car tax threshold. It also extends to business loans for light commercial electric vehicles, such as vans and utes, without the same price cap.

A key objective is to help small and medium-sized businesses electrify their fleets by lowering upfront costs. At the same time, the initiative aims to encourage car manufacturers to expand the range of EV models available in Australia.

The investment also supports the long-term integration of EVs into the energy grid. Emerging technologies like vehicle-to-grid (V2G) could allow EVs to function as mobile energy storage units, supplying electricity back to the grid when needed.

According to CEFC executive Richard Lovell, the program is designed to reduce financial barriers and promote the adoption of advanced EV technologies, while also helping to build a more accessible second-hand EV market in the future.

Original Article Source: The Driven