"Perverse:" Tesla and Hyundai say state-based EV tax would mean electric car owners subsidising hybrids
Tesla and Hyundai are opposing a proposed road user charge (RUC) for electric vehicles in New South Wales, arguing it unfairly penalizes EV owners compared to hybrid drivers. They contend that the tax structure would effectively force EV owners to subsidize the higher emissions of hybrid vehicles.
Why it matters
This debate reflects the broader policy challenge of how governments should tax road usage as the automotive industry transitions away from traditional fuel excise taxes.
Electric car giant Tesla and South Korea legacy car maker Hyundai have both come out against the proposed EV road tax for electric vehicles, arguing that it would result in electric car owners being hit harder than those driving more polluting hybrids.
Hyundai says an EV road tax would deliver a perverse outcome, while Tesla says it will end up with EV owners effectively subsidising the owners of hybrid cars, which still pollute despite their improved efficiency over regular petrol and diesel cars.
The NSW government is currently holding a parliamentary inquiry into the proposed EV road tax, with most submissions coming out against it – with the notable exception of motoring group NRMA.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in