News - Polestar

Polestar has no regrets over FCAI exit

Local Polestar MD defends NVES, questions LCT breaks, sees no reason to re-join FCAI

10 Mar 2026

IT IS no secret that car-makers must pay to be a part of the collective voice by funding the Federal Chamber of Automotive Industries (FCAI) to represent them, but it has now been two years since electric vehicle brands Polestar and Tesla chose to withdraw from the organisation and much has changed in the intervening 24 months. 

 

Speaking with GoAuto at the Sydney unveiling of the Polestar 5, Polestar Australia managing director Scott Maynard said he did not think Polestar had a distinctly loud voice inside the FCAI anyway and spoke out against critics of the New Vehicle Efficiency Scheme (NVES), unfair loopholes in Luxury Car Tax (LCT) exemptions, and what he believes is the best way forward for transport emissions. 

 

“The volume players that effectively fund the FCAI clearly had the majority of the voice of that chamber, and so to continue to be a party to that and to buy into it was just the wrong thing to do at that time for Polestar,” explained Mr Maynard. 

 

“I’m certain that in time, the FCAI will need to shift its position on electric vehicles, given that the take-up of EVs in Australia continues to accelerate, its share continues to grow, and so if they continue to claim to represent the automotive market (here), they’re going to have to concentrate on electric vehicles as well. 

 

“But for now, it doesn’t make sense for us to be there, said Mr Maynard, reiterating that leaving the FCAI "was the right decision”. 

 

“Legacy brands command a resounding voice inside the FCAI – they fund it. And so the FCAI has no alternative but to represent those brands, who don’t want to see the New Vehicle Efficiency Scheme (NVES) succeed," Mr Maynard claimed. 

 

“But it’s pleasing to see a softening of the messaging that’s coming from the FCAI in more recent times, in response to a market that’s shifting towards acceptance of EVs. And those legacy brands (are) increasing their portfolio of models, drawing on their international catalogue and presenting more choice to Australian motorists,” he said. 

 

While stricter emissions laws came into effect for ‘light’ vehicles in December 2025, enforcing compliance to a much stricter Euro 6d standard instead of the previous Euro 5 standard that dated back to 2009, any vehicles that had paperwork filed before December 1 can remain at the Euro 5 standard until 2028 – which includes big-selling Ford Ranger and new-generation Toyota HiLux utes. 

 

‘Heavy’ vehicles (such as 2500/3500-class US pick-ups and Toyota’s LandCruiser 70 Series) sidestep Euro 6d and only have to meet the less stringent Euro 6 standard. 

Although these Euro standards are designed to improve air quality rather than reduce carbon dioxide emissions (which is a mechanism of NVES), a parallel can be drawn between the fact that many manufacturers choose to ship old-tech engines to Australia when cleaner options are available in their global portfolios and their decision to withhold fuel-efficient and electrified models from this market until forced to by regulation speaks volumes. 

 

“I’m convinced that inside boardrooms of some of those manufacturers (who are anti-NVES), the conversation (goes): ‘we’re now hard up against our targets in European and other markets, where else can we sell this engine? Well, we can ship it to Australia,” said Mr Maynard.  

 

“So I think it’s the right thing to do to close that door (with NVES), and that’s what we’re watching happen.” 

 

Historically, Australia was once at the forefront of global anti-pollution emissions regulations when it introduced ADR27A in July 1976 – putting it on par with Sweden and only outdone by US states such as California which already mandated unleaded petrol. 

 

But Australia has adhered to the Euro 5 standard for over a decade longer than the European Union, which went to Euro 6 in 2014 and will adopt Euro 7 in 2026. 

 

As for the continued implementation of NVES, Mr Maynard is adamant that it is an important piece of legislation that needs to be maintained for environmental reasons. 

 

“It would be concerning (if NVES was wound back or cancelled) because the current speak from the opposition is that they would seriously review, curb, change NVES," he said. 

 

“I’d be interested to see whether that would still be their position given what I think could only be read as its resounding success – remembering that the NVES scheme was brought about to encourage manufacturers to start withdrawing the sale of polluting old-technology vehicles, and encourage manufacturers to bring more choice to Australian buyers that would allow them to choose from a wider range of low- or preferably zero-emission vehicles. 

 

“That’s happened. We now have nearly 150 electrified models on sale in Australia, and that position is markedly different from how it sat six months ago, 12 months ago, certainly two years ago. So that alone has suggested that the NVES is doing exactly what it was designed and implemented to do. It’s a massive tick. 

 

“The government has stated goals on where it wants to be in terms of its overall emissions output for Australia, and its new-vehicle emissions output. While we’re moving in the right direction, the trajectory, the speed of growth is not fast enough to make the goals that they want to hit by 2030, so that makes a scheme like this even more important. 

 

“However, complementing the NVES scheme is the FBT subsidy, which currently forms pretty much the only subsidy available to motorists to buy electric vehicle, given that state-based schemes have now largely been disbanded or withdrawn. 

 

“And so it’s extremely disappointing to see Treasury now reconsider that, and conduct a review on whether they continue it based not on its success, but on its cost, while at the same time the flagrant abuse of the same support that’s levied against light commercial vehicles goes untouched, which I find somewhat incongruous to what we’re trying to achieve. 

 

“I was a tradie and started out in the industry as a tech, and wholeheartedly still support the subsidy of any form of tool of trade to our nation’s trades. 

 

“But it’s very clear now that the sale of luxury utes, dual cabs and American-style trucks is at odds with the amount of support that’s applied to LCT exemptions and FBT exemptions when the sale of electric vehicles could do so much more for our economy, the choice of Australian drivers, and to the benefit of everyone that breathes,” said Mr Maynard. 

 

Polestar Australia reinforced that it was not objecting to discounts for people who are using these vehicles as tools of trade, and genuinely are tradies, but instead for LCT exemptions applying to regular buyers of luxury dual-cab utes, despite it being paid on the equivalent luxury SUV or sedan. 

 

“They’re even marketed with caravans and boats on the back of them, not toolboxes and planks of wood,” he said. 
 

“That’s not what the government set this scheme up for. And so yes, I couldn’t be more supportive of the nation’s trades and the need to ensure that they’re subsidised to be able to get access to things that they need to do their job. But that’s not what’s happening. 

 

“I had the luxury of not being in the office for a day last week and drove past a school, and the line-up of luxury dual cabs waiting to pick up kids from school – not one of them had a tool in the back of it. 

 

“Every one of those dual-cab utes was sitting there idling outside a school. Could you imagine if the same FBT subsidy was stepped up to the point where people were encouraged to replace every one of those with a compact electric SUV, and they’re all sitting there, not burning a thing? I’d rather my kids be at that school. 

 

“What (the FBT limit) has encouraged is again more range, more choice, but it’s also encouraged the pick of those cars from Australian consumers. In terms of the benefit that that tax advantage provides, particularly in a novated scenario, that’s now allowed us to see electric vehicles being sold at price parity with their petrol equivalents. So again, massive success. 

 

“We’ve just seen the very first release of a report card on NVES. That came out two weeks ago and showed that as an industry, we’ve exceeded the target set before us by 21 per cent – that’s a pretty comprehensive overrun. 

 

“We’ve seen more than two thirds of manufacturers operating in Australia able to duck under the target that was set for them and many of those that didn’t hit that target weren’t even trying – they just didn’t have anything in their range that would allow them to do that, and that’s a position that they're comfortable with. 

 

“We have to consider that both of those schemes are a success, and now is not the time to muck with either of them,” he said. 

 

“It’s not always practical for all buyers to be able to (buy zero or low-emission vehicles), and we’ve got to consider that the incentives that are currently in place on the new vehicle in time flow through to the used-vehicle market, which is priced by demand, and that will then make electric vehicles available to an even broader range of Australian drivers.” 

 

As for the FCAI reporting new-vehicle sales through VFACTS, Mr Maynard felt that this would be best handled by a government department. 

 

“Given that the FCAI is now less able to definitively and accurately call the number of vehicles sold in any given month, it’s becoming less and less logical to rely on VFACTS for market performance data," he asserted. 

 

“For most of last year, the VFACTS data showed that the (electric vehicle) market was in decline, and only when you added in the data that was held by the Electric Vehicle Council (EVC) did you realise that the market was actually experiencing a small phase growth. So that’s a very black and white picture. 

 

“It would make sense for market data to be consolidated and reported by government, given that they now have access to EVC data as well as FCAI data, as well as data from brands that don't report to either. 

 

“There are more entrants to the Australian market that are yet to make up their mind whether they would hand over their sales data to either of those organisations, driving the number that the FCAI reports through VFACTS into obscurity. 

 

“It’s becoming less and less relevant, particularly given that one of those brands that doesn’t report into VFACTS is the single biggest seller of electric vehicles in Australia. That’s a big player to miss,” he said.

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