Demand for EVs down under
Electric Vehicles (EVs) are gaining traction worldwide as an alternative to dirty, polluting, and costly Internal Combustion Engine (ICE) vehicles. In fact, almost 10 million battery EVs (BEVs) were sold around the globe last year.
However, Australia is a bit of an outlier. It is a Western advanced economy, with almost one car per household – and almost half of households owning two or more cars – though it is densely populated in coastal areas, and it’s common for major population centres to far exceed the range of most consumer-level EVs on the market (500km or so.) Though the Australian government is ramping up EV infrastructure spending and looking to impose taxes on high-emissions vehicles, is there a demand for EVs in Australia? If so, who is buying them?
Sales of EVs – Present and Projected
In Australia, 98,436 new electric cars were purchased in 2023, accounting for 8.45% of total new car sales (via The Electric Vehicle Council of Australia.)
In February 2024, the number of BEVs sold doubled from the previous month to 10,011, meaning that total EV sales (including PHEVs) surpassed 10% of the market. Industry sources forecast that sales in 2024 will be between 1.05 and 1.1 million, which is a little decrease from the previous year. This year, sales of EVs are still expected to rise.
Who are driving EVs?
According to data from Carloop, the largest proportion of Australians driving BEV Tesla cars (n=827) are the 45-54 demographic (29.4%) and the 35-44 cohort (37.1%). They are overwhelmingly men (86.4%) and earning over $100,000 but below $149,999 (41.2%, followed by $150,000-$199,999 on 32.9%). 86.4% of these drivers work full-time.
A report by the ABC showed that most EV drivers come from the outer metropolitan areas, 43%. Inner metro coming second with 39%. Rural and regional EV owners combined totalled an 18% share – possibly hinting that range anxiety and a relative lack of infrastructure may cause long-commuters to be more reluctant to switch.
Driving demand – Low Emissions Loans
Like most big purchases in life, there is a majority of Australian customers buying an EV using finance. The Big 4 banks such as Commonwealth Bank and Westpac offer discounted loans for low or zero emissions vehicles, which equates to about a 0.5%p.a. discount. Other banks such as Bendigo waive application fees and document preparation fees, as well as monthly service fees.
Westpac also offers free 1,250kWh of charging for up to 12 months using the Chargefox public charging network. NRMA offers a 1.5% discount on their standard loan rates for fully electric vehicles and waive the monthly account keeping fee. Macquarie Bank offer discounts for BEVs, depending on whether they’re new, demo, or used. Further discounts apply to people who offer larger down payments and own other securities such as homes.
Remember to check with these individual banks or consult a broker to see if your EV purchase is eligible for these discounts. With demand rising, we may see even deeper discounts as time goes on!
