Australian bank to take loans for the contemporary diesel and gasoline cars as the government looks to increase EV uptake

August 23, 2022: -An Australian bank is planning to stop giving loans for recent diesel and gasoline cars as the country is trying to motivate the use of electric vehicles and catch up with developed countries.

On Friday, Bank Australia said it would scrap loans for the recent fossil fuel vehicles from 2025. Sasha Courville, its chief impact officer, said that date has been chosen “due to the change to electric vehicles needs to happen quickly.”

The bank believed this could happen “with the right which supports policies in place to obtain a greater range of more reasonable electric vehicles to Australia.”

While there will be no loans for recent combustion engine vehicles, including hybrids, from 2025, Bank Australia will keep providing them for used ones.

“We’ll continue to provide loans for second-hand fossil fuel vehicles until there is a viable and thriving market for electric vehicles,” it added.

On that front, Friday saw the Australian government provide information regarding the ideas to set up a National Electric Vehicle Strategy, with a discussion paper regarding the matter, which has to be released for consultation.

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In an announcement, the government added that Australia was “huge behind the pack when it comes to electric vehicles.”

It further said that, at just 2%, the country’s uptake of new low-emission vehicles was “about five times lower than the global average national leadership is required to ensure we don’t continue to be left behind.”

“In this context, we believe that the present is the time to have an orderly and sensible discussion regarding whether vehicle fuel efficiency standards could help improve the supply of electric vehicles in the Australian market, address the cost-of-living impacts of inefficient cars, and reduce emissions from the transport sector.”

Bank Australia, owned by the customer, traces its roots back to 1957. According to its Statutory Financial Report for 2021, total assets had grown to 8.5 billion Australian dollars, with profit following the tax coming in at 40.7 million Australian dollars.