It’s not our fight! Mazda will add more plug-in hybrid models but won’t campaign for FBT exemption to make them cheaper
Mazda won’t be joining the push to extend the Fringe Benefits Tax (FBT) exemption for plug-in hybrid vehicles even as it expands its PHEV line-up in Australia.
The Japanese brand has just launched the CX-80 seven-seat SUV locally with a 2.5-litre four-cylinder plug-in hybrid joining two inline six-cylinder mild hybrids in its powertrain armoury.
It is also continuing to push for an expansion of PHEV into the local CX-90 and about-to-launch CX-70 model lines despite homologation hurdles.
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The FBT exemption for PHEVs purchased via novated lease is scheduled to expire April 1 2025, but car brands led by BYD and relevant businesses such as finance companies are lobbying for its extension.
The FBT exemption is estimated to save tens of thousands of dollars over a multi-year lease for both employer and employee
PHEV sales are up 103.8 per cent year on year in Australia off a low base, largely because of the PHEV exemption stimulus combined with the arrival of the plug-in BYD Sealion 6, which is now selling more than 1000 examples per month.
“If it’s [FBT exemption] available it’s great. If it’s not that’s fine as well,” Mazda Australia managing director Vinesh Bhindi told EV Central.
“In the end it’s a taxation legislation and government responsibility and they can bring it on or take it off any time they want to.
“So we don’t and we can’t make business plans on that being available. If it is – fantastic. I’m sure consumers benefit and consumers will be happy with it.
The prospect of the FBT exemption coming to an end has not been responsible for the delay in the PHEV powertrain being added to the CX-90 and CX-70. Both are currently offered only with the mild hybrid inline sixes in Australia.
That’s despite the PHEV being fitted to the CX-70 and 90 in North America.
The PHEV CX-90 was promised for Australia by the end of 2024 but there is now no confirmed timeline for its arrival in the CX-70 or 90.
That’s despite the wide-body CX-70 and 90 sharing fundamental Large Product Group underpinnings with the narrow-body CX-60 and CX-80.
The issue is the 70 and 90 were targeted at and homologated in North America, while the 60 and 80 have European EU homologation.
“You can homologate cars in two ways in Australia, either under EU or Australian Design Rules,” explained Mazda Australia marketing director Alastair Doak.
“That’s fine and that’s great and we are not asking for a change to that, but the US regulation is not recognised under that system.
“So if you take a car that has been homologated for the US market then there is quite a lot of work to do to them.
“So you can’t start with those standards and just modify a little bit for ADRs and it gets through.”
Bhindi added the Australian priority had been to get PHEV into the CX-60 and 80 because sales volumes were expected to be higher.
“It’s [PHEV] still in the planning [for CX-70 and CX-90], but our priority was to bring in CX-80,” he said.
“CX-60 and 80 is where we think the majority of the customers will be.
“But it is our intent to bring that. I can’t give you a date today but it’s still in the queue for getting the plug-in hybrid for 90 and 70 as we committed.”
Mazda’s first PHEV is also the most powerful powertrain it has ever sold in Australia with a combined 241kW at 6000rpm and 500Nm at 4000rpm. Combined with a 17.8kWh battery, the system’s single e-motor provides a claimed 76km of pure EV running.
