The NoVA comes too early

The NoVA comes too early

For many EPUs and SMEs in Austria, the introduction of NoVA for light commercial vehicles would increase the costs to an extent that could even threaten their existence. For slightly larger fleets, the costs add up: a company that needs to purchase ten flatbed vehicles, for example, will have to pay 115,000 euros more from July 1st than they currently do.

But for some commercial vehicles it's even worse. A MAN TGE 4×4 will be 13,473 euros more expensive on July 1, 2021, and in 2024 the NoVA will already be 24,255 euros. Due to the NoVA requirement, a Fiat Ducato L4H3 will be 6,207 euros more expensive from July 1, 2021, and in 2024 it will cost 10,884 euros more than today. In contrast, the increases in the passenger car sector seem almost marginal, even if they still hurt: on July 1st, for example, the NoVA for the Ford Galaxy with 150 hp diesel will increase from the current 2,848 euros to 3,204 euros, and in 2024 the NoVA will then rise to 4,750 euros. This also affects families. Similar to station wagons, although the NoVA for the currently most popular (company) car in Austria - the Skoda Octavia - will increase from the current 590 to 1,530 euros by 2024, as the fleet association calculates.

 “Every new car buyer – private and commercial – will actually be asked to pay twice, because the companies will pass the costs on to customers and consumers,” believes the association. This emerges from the results of a survey by the fleet association. 60% of those surveyed will pass on all additional costs. 16% will charge at least part of the costs and 13% have not yet thought about it.

Companies pass on costs

FVA chairman Henning Heise sums it up: "That means that in the end we all pay more for the carpenter's pot, the delivery from the online mail order company, the installation of a kitchen or the maintenance of the thermal bath. Even if you don't own a car yourself. This fact is often forgotten - and kept quiet by politicians. In addition, the benefit in kind for employees driving company cars will also increase, as it will be proportional to the purchase price including NoVA and sales tax calculated.”

Marcella Kral, deputy chairman of the FVA, adds: "The higher costs are one side, the other is the timing. We know from daily practice and communication with fleet operating companies that many want to switch to alternative drives for their own reasons. But the market currently does not yet have the right model for everyone - even if the selection has grown in recent years."

Purpose depends on choice of drive

Kral adds: "To put it simply, it makes a huge difference whether we are talking about a delivery person who only works in urban areas, a construction company in Upper Styria that also handles many projects in Vienna, or a supplier who mainly covers kilometers on the motorway between Vienna and Salzburg. Only the delivery person in urban areas could currently switch directly to an electric van - and that actually only makes economic sense if they have a parking area with a charging station. They do the job for everyone else Models on the market for all seasons do not yet match what the intended use would require in terms of range.

Lazy compromises

But reach is not everything, which is why the recently published study by “Webfleet Solutions Europe” – like everything that is good for quick headlines – should be treated with caution. It certifies that 51 percent of all conventionally powered commercial vehicles in Austria could be replaced by electric models. Conversely, it also means that 49 percent cannot currently be replaced. In addition, the study only looked at the mileage - and concluded that if a van drives less than 300 kilometers per day, then it could be replaced with an electric model. Theoretically this is true. In practice this is not possible in many cases.

The time is not yet ripe

Because: One asset of commercial vehicles is their diversity. And that's where another problem arises when it comes to NoVA. Anyone who needs a van with four-wheel drive that is suitable for rough roads for everyday work will currently not find an electrically powered version. Even if he only drives five kilometers a day. And if you need a flatbed, you can currently only choose one model. Kral: "The fleet association sees e-mobility as a great opportunity for the absolutely necessary decarbonization of transport in Austria. But: In contrast to e-cars, electric commercial vehicles still need a little more time for the development and further market ramp-up. Because: If you force companies to switch now, then it is often a compromise which, in the worst case, with bad experiences, can negatively influence the perception of e-mobility for years to come. And politicians won't want to seriously risk that, they say “The transport and energy transition is far too important for society as a whole. In fact, politicians, companies and consumers have to pull together here, otherwise it will not bring the desired success.”