Nissan: we will comply with 2035 Aussie ICE ban

If Australia does legislate an internal combustion engine ban in 2035 Nissan says it will be ready to comply.

The Japanese brand has been an EV pathfinder in Australia, introducing the Leaf battery electric vehicle in 2012.

But more recently it has struggled to gain access to EVs because of the absence of a federally mandated CO2 emissions reduction structure and purchase subsidies.

The lack of direction in electrification in Australia has directly impacted the availability of the new Nissan Ariya mid-size SUV here. On-sale in Japan since late 2021, an arrival in Australia in 2023 isn’t even confirmed.

But Nissan Australia managing director Adam Paterson says the change of federal government and its positive language about EVs has resulted in interest from Nissan’s top management.

“There’s been discussions based on the change in government and questions about the platform of the new government even before the election was final and what a change of government would mean in regulatory terms and what the impact would be on us as a manufacturer in the market,” Paterson said.

Paterson was an attendee at the recent EV talkfest in Canberra where federal energy minister Chris Bowen committed the government to studying the introduction of fuel efficiency standards.

Although it has shed little detail on what to expect this is the first tentative step toward an eventual internal combustion engine sales ban that pro-EV lobbyists want to happen as soon as 2035. The ACT government has already stated that timeline as its intention.

“We will adhere to the rules that are put in place at the time, so if it’s an ICE ban in 2035 we will adhere to an ICE ban,” said Paterson.

“We will work with our headquarters to make sure we can operate here under those conditions.”

Paterson and Nissan Australia are in a difficult position. Globally, Nissan has committed billions to EV development, but here its sales volume is driven by diesel utes and petrol SUVs. It is embracing hybrid tech with its new e-Power drivetrain rolling out in Australia soon.

But a changeover to EVs too soon could cruel its sales volumes and financial health.

It’s a challenge that faces much of the car industry. While pro-EV brands like Volkswagen push for more government support for electrification sooner, other brands aren’t so keen

That’s reflected in the position of the over-arching auto industry lobby group, the FCAI. It wants a slower timetable and a set of regulations that are technology agnostic. In other words, a more drawn-out transition away from ICE.

Paterson said Nissan supports CO2 targets, but with provisos.

“We have to work with the federal government to make sure it’s a target set nationally as opposed to on a state basis.

“We support one that’s a CO2 objective not one that’s a sales objective by powertrain type.

“So a CO2 objective that allows the manufacturers to deliver that output across a fleet average as we are able to do with the portfolio we have access to.”

Paterson wouldn’t be drawn on whether Nissan was in favour or opposed to a 2035 ICE ban. However, he did urge the federal government to adopt an emissions roadmap aligned with large global markets.

“We don’t have the volume in this market to have specific vehicle development exclusively for this country.”