This move happens when new EV car sales begin to stall.
The progressive central Australian Bank has announced that it will automatically reject loan applications for customers seeking to buy gasoline vehicles.
Officially, Bankmecha Bank said it will only fund electric vehicle loans.
“Loans for new combustion engine vehicles, including low entry and hybrid vehicles, are no longer eligible,” the financial institution said in a statement.
Lenders consider vehicles under 1,000 kilometers to be new.
The purchase of a new internal combustion engine is classified as an unacceptable loan objective, with banks limiting increases or cash outs on housing securities.
Bank Australia lists some of its central interests as climate action, nature and biodiversity, and indigenous perceptions and respect.
Electric vehicle sales stall
However, the bank’s attitude could be in waters that have already had problems with car sales.
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New vehicle sales in Australia are stagnating, according to the latest data released by the Automobile Chamber of Commerce on March 5th.
Purchases of new vehicles are generally declining, and electric vehicles are no exception to the rules.
According to industry groups, electric vehicles account for 5.9% of all new vehicle sales, compared to 9.6% in February 2024.
Toby Weber, CEO of the Federal Chamber of Commerce for the Automotive Industry, said it was a disappointing outcome for electric vehicles given its widespread availability.
“We are now two months ahead of the government’s new vehicle efficiency standards, and although the supply of battery electric vehicles is rising dramatically, consumer demand has declined by 37% this year compared to the first two months of 2024,” he said.
“Our major concern has always been EV adoption rates.”
Sales of Tesla electric vehicles fell 71.9% in February compared to the same period last year.
Tesla Model 3 purchases fell by 81%.
Sales of new hybrid vehicles not approved or not loaned by Bank Australia have overcome the sales storm somewhat better than their fully electric cousin.
Hybrid vehicle sales increased 34% compared to February last year.
New emission standards
The new vehicle efficiency standard is a government policy aimed at encouraging low-carbon passengers and the provision of light commercial vehicles.
This policy ultimately decides to reduce transport emissions by offering a greater choice of low-emission vehicles and providing manufacturers with targets that they will ultimately need to “meet or hit.”
The change took effect on January 1st.
