The uptake of EVs in Australia has been slow over the years due to our geography and lack of favourable government policy when compared against some European countries like Norway (World Economic Forum, 2023). ‘Range anxiety’ has also been a known cause of the slow update of EVs in Australia due to its large landmass and the long distances travelled, but as the charging network expands, this will become less of an issue for motorists.
Source:FCAI
However, the numbers announced in the Federal Chamber of Automotive Industry (FCAI) media release in May 2023 suggest Australians are beginning to embrace EVs. EVs accounted for 8% of sales in April 2023, which is well up from 1.1% in April 2022 (Federal Chamber of Automotive Industries, 2023). Recent car sales figures in the table above show that Australia is finally catching up on EVs.
Another key impediment to the adoption of EVs in Australia is the vehicle fuel efficiency standard. Over 85% of cars sold worldwide are covered by a fuel efficiency standard. Australia (along with Russia) is one of only two developed nations that don’t currently have fuel efficiency standards, meaning car manufactures are able to sell their less fuel-efficient cars (which may not be importable into other developed countries) into Australia (Department of Infrastructure, Transport, Regional Development, Communications and the Arts, 2023).
Fuel efficiency standards force vehicle manufacturers to improve the average fuel efficiency of new cars they are making. A fuel efficiency standard would eventually benefit Australians by reducing energy costs and by reducing emissions on Australian roads.
Aren’t EVs too expensive?
Telsa has been dominating news headlines when it comes to EVs for a long time, and they don’t come cheap. What many people don’t realise is that whilst Tesla is recognised as one of the pioneers in the industry, they are not the only electric car maker. Many Asian and European car makers have busy developing their own EV offerings to the market and currently there is a wide range of EVs available at different price points.
Source: International Energy Agency
China is leading the global manufacturing market with more than 50% of all EVs on the world’s roads originate in China (International Energy Agency, 2023). Two Chinese automotive giants, MG and BYD have recently announced their entrance into the Australian market with affordable passenger vehicles.
As Australia pivots from internal combustion engines to EVs due to the increasing supply and affordability and public perception towards EVs changing over time, new regulations such as the Fuel Efficiency standards once introduced by the government could super charge the market.
With the cost-of-living pressures mounting on Australian families, high petrol prices and the low operating and maintenance costs of EVs could combine to push more and more people to consider buying an EV in 2024.