Skip to Content
Teletrac Navman

TS24 - The Telematics Survey 2024 - Is Now Available. Download the Report Here

Incentives have supercharged EV sales globally: here’s how Australia compares

Data Blocks
Data Blocks
Scroll

Battery electric vehicles accounted for a record 7.4 per cent of new vehicle sales in Australia in the first half of this year. Twelve months ago, the figure was just 1.8 per cent, meaning four times as many buyers opting to go electric than a year ago.

But we still have some way to go if we hit net zero by 2050. In 2022, the transport sector accounted for 19 per cent of Australia’s carbon dioxide emissions. Without intervention, transport is projected to be the single largest source of emissions by 2030, according to the Australian Government’s Department of Climate Change, Energy, the Environment and Water.

Check out our Infographic on EV adoption worldwide to compare what we’re doing in Australia.

Battery electric vehicles provide a pathway towards reducing emissions, but like any new technology, they tend to be expensive.

Range anxiety and charging times a barrier to uptake

Range anxiety [range anxiety]. Noun, formal. The worry that drivers won’t have enough battery charge to reach their destination. "Range anxiety is often cited as the most important reason why many are reluctant to buy electric cars."

In a land as big as Australia, range anxiety is more common than you would expect. Buyers also hesitate about the amount of time it takes to charge an EV (around 40 minutes from 15 per cent to 80 per cent charge with a fast charger) compared to the handful of minutes it takes to fill up the tank of a fossil fuel vehicle. Locally, the fast-charging infrastructure is also patchy, meaning fast chargers are nowhere near as common as a petrol station.

To encourage EV adoption, governments around the world have put incentives in place designed to lower the cost of EVs, fast-track the construction of charging stations and offer perks like being able to travel in transit lanes, receive free parking and enter zero-emissions zones in city centres.

How Australian incentives compare globally

In Australia, the most common EV subsidies are purchase incentives. In November 2022, the Treasury Laws Amendment (Electric Car Discount) Bill passed through the Federal Parliament, providing up to $2000 off the purchase price of battery-electric and plug-in hybrid vehicles (PHEV), as well as Fringe Benefits Tax (FBT) exemptions for fleets and novated leases.

Across the ditch in New Zealand, the Clean Car Discount is a purchase incentive for new electric vehicles (EVs). Buyers of cars with zero emissions receive $NZD7,015 ($A6,456), while low emissions vehicles are eligible for an incentive of $NZ4,025 ($A3,704).

In Europe, purchase incentives are also common, with the French government offering a purchase incentive of €6,000 ($A9,600) when someone buys a new EV. There is also an incentive of €1,000 ($A1643) for scrapping an old petrol or diesel car. Next door in Germany, the government offers a range of EV inducements, including free parking at municipal garages and purchase and scrapping incentives.

Post-Brexit UK also has purchase and scrapping incentives, while exempting EVs from road tax. Neighbour Ireland subsidises home charging, with The Sustainable Energy Authority of Ireland (SEAI) offering a grant of €600 ($A986) towards installing a home charging point for an electric car.

There’s no argument incentives work both in Australia and around the globe. However, buyers are coming around to the advantages of EVs - the smooth and quiet driving characteristics and instant throttle response as well as being motivated by the environmental and social benefits of EV ownership.

As technology progresses, the cost of EVs will continue to decrease, making them more affordable to more people. At the same time, the increased pace of fast charger construction will help make range anxiety a thing of the past, even in a country as vast as Australia. By 2030, the Australian government projects 89 per cent of new vehicle sales will be electric, providing a real pathway enabling us to work towards hitting net zero by 2050.

 


Other Posts You Might Like