Dr Zhang said the greatest risk for Australia becoming reliant on Chinese-designed and made EVs was not supply issues, but geopolitics.
"Increasingly, EVs are all equipped with not just electricity, but also so-called connectivity to technologies … that can potentially collect user data," Dr Zhang said.
"And [it's] whether the Australian government will be happy for Chinese EV makers to collect that data [or not]."
Earlier this year, the US launched an investigation into the national security risk Chinese smart cars might pose.
Beijing responded by urging the US to respect the principles of fair competition, to "stop overstretching the concept of national security, stop its discriminatory suppression of Chinese companies and uphold an open fair and non-discriminatory business environment".
Dr Herscovitch said work was just beginning on how best to navigate the issue of data collection.
"What those protections for Australian consumers might look like remains to be seen, but one can imagine that there might be things put in place along the lines of requirements of data localisation in Australia," he said.
"I think if you're looking at it from the point of view of the appeal of low cost, high quality EVs for Australian consumers, and if you're looking at it from the point of view of Australia's long term, challenging objective of transitioning to net zero, you don't want to be in a position of shutting out Chinese EVs from the Australian market in general.
"What you want to do in all likelihood is put in place the necessary security mitigation measures to ensure that Australian consumers are protected and that Australians can safely import and use Chinese-made EVs without being subjected to undue security risks from either Chinese technology companies or the Chinese government."./-
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