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What is the New Vehicle Efficiency Standard (NVES)?

2026-07-21

The New Vehicle Efficiency Standard (NVES) is Australia's framework designed to encourage vehicle manufacturers to supply lower-emission and more fuel-efficient vehicles to the Australian market.

In this video, Brett from Ken Mills Toyota explains the New Vehicle Efficiency Standard in simple terms, helping Australian motorists understand what the NVES is, why it has been introduced, and how it may influence the future of new vehicle sales in Australia.

Unlike regulations aimed at vehicle owners, the NVES focuses on manufacturers and importers, encouraging them to offer a wider range of low-emission vehicles, including hybrid, plug-in hybrid, battery electric and hydrogen-powered vehicles. The goal is to reduce vehicle emissions while providing consumers with more choice and access to emerging technologies.

If you've heard about the NVES and want a straightforward explanation without the technical jargon, Brett breaks down the key facts and what they mean for the Australian automotive industry.

Brett explains it in simple terms, helping you understand what it means for manufacturers, the industry and Australian drivers.

Watch now for a straightforward explanation.

FAQs

  • What is the New Vehicle Efficiency Standard (NVES)?

    The New Vehicle Efficiency Standard (NVES) is an Australian Government policy designed to encourage vehicle manufacturers to supply more fuel-efficient and lower-emission vehicles to the Australian market. It sets emissions targets for new vehicles sold by manufacturers rather than placing requirements on individual motorists.

  • Why has Australia introduced the NVES?

    Australia introduced the NVES to improve the fuel efficiency of new vehicles and reduce transport emissions. Similar standards have been in place in many overseas markets for years and encourage manufacturers to bring newer, lower-emission technologies to consumers.

  • Does the NVES affect current vehicle owners?

    No. The NVES applies to manufacturers and importers of new vehicles. It does not require current vehicle owners to replace or modify their existing vehicles.

  • Will Australians still be able to buy petrol and diesel vehicles?

    Yes. Petrol and diesel vehicles will continue to be available. The NVES encourages manufacturers to offer a broader mix of lower-emission vehicles alongside traditional petrol and diesel models.

  • What technologies does the NVES encourage?

    The NVES supports the introduction of lower-emission technologies such as hybrid vehicles, plug-in hybrids (PHEVs), battery electric vehicles (BEVs) and hydrogen fuel cell vehicles.

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