EV purchases by Australians may be set to rise to the hundreds of thousands, with 42% revealing in a new survey an EV will be their next car purchase.
Survey respondents were asked if, or when, they will buy an EV, a third (34%) saying they will buy one when they’re ready to upgrade their existing car, while 8% will purchase one before they are ready for an upgrade.
Nearly half (46%) revealed their next car will not be an EV.
Just 1% already own an EV.
Those who did not express interest in EVs were asked to identify their major deterrents, with 41% revealing high EV prices as a main barrier, 21% because of a low number of charging stations, and 17% believing an EV isn’t suitable for their needs.
About 15% won’t upgrade mostly because they are worried high energy prices will lead to an increase in charging costs, and 7% fear the charge on their vehicle won’t last the duration of a trip, potentially leaving them stranded – known as ‘range anxiety’.
The survey found that EV appetite is stronger among younger Australians, with half (50%) of under-30s indicating they will purchase an EV either before or when they are ready to upgrade their car, compared with 45% of 31-50-year-olds and 34% of over-50s.
EV take-up among the business sector is likely to increase after the Australian Government recently passed The Electric Car Discount Bill. Under the new law, the bill removes import tariffs and exempts employers from incurring fringe benefits tax on zero- or low-emissions vehicles that are beneath the Luxury Car Tax threshold (up to $84,916) – including battery electric, hydrogen fuel cell and plug-in electric vehicles – that were first held and used from July 1, 2022.
The findings were derived from a survey of an independent panel of 1010 Australians, commissioned by finance platform Money.com.au. The survey respondent pool included the general population and 11% indicated they do not drive. .
Australia has half the amount of EV charging stations (just over 3000) than petrol stations (6500), although state governments are planning to roll out more charging stations to close the gap.
Licenced financial adviser and Money.com.au spokesperson Helen Baker says EVs are expensive like any new technologies at the start.
“However, as more brands begin to produce electric models and the market becomes more competitive, prices will come down. Drivers could also take into account running costs when assessing overall price. Similar to other products, such as solar panels, while the upfront cost is high, the running cost can be significantly lower.”
As an example, the average monthly cost to run a sedan that travels 20,000km annually is about $393, while an EV equivalent can cost just $161 to run.
Baker says that if Australia undergoes an economic downturn in 2023, new car purchases may slow down significantly.
“With an economic downturn comes tightened spending and a pause on large discretionary purchases as consumers prioritise essential expenses and loan repayments.”
She says that in spite of this the public’s desire to switch to EVs is growing.
Australian car owners generally upgrade their cars every 10.6 years on average.
In the year to December 2022, Australians bought 993,509 new vehicles, with sales in November up 17.9% on November 2021.
In contrast, EV purchases grew from 2.05% in 2021 to 3.39% in 2022.
Click here for full survey results.
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