SYDNEY – Australia is facing the global shift of high demand for electric vehicles, with scarce sales of Teslas and other models despite the country’s important place in the global supply chain.
Only 7,000 electric vehicles were sold in the country in 2020, an increase of about 250, or below 4% over the previous year, according to figures from the country’s Electric Vehicle Council, which represents the industry. That compares with a 43% increase in electric vehicles (worldwide sales to 3.2 million even when total car sales went down by a fifth.
EVs make up 4.2%, or 134,400, of all cars sold worldwide. In Australia, they make up just 0.7% of the 1 million cars sold each year, making it one of the slowest adopters of clean car technology.
Full-stock Australia is a major supplier of major battery minerals to the electric vehicle sector. But its economy also relies heavily on fossil fuels – something more EVs proponents say is holding the region back.
Industry experts blame a lack of a clear policy to encourage EVs, with the country’s conservative government seen as a major support for coal.
“Because we have a national policy on climate change, and confidence in recognizing the pace of climate change, our national transport sector policy is commendable. In fact, it is a slow policy on electric vehicles,” said James. Perst, lecturer in environmental and energy law at the Australian National University.
EV national policy was proposed by the Australian Parliament in January 2019, but no motion was moved. A broken down discussion paper on ‘future fuel strategy’ was published in February but ignored previous expert recommendations and removed any financial incentives from the federal government to drive drivers. to help transition to electric cars. And the paper did not propose a clear target for new EV sales.
“Basically, the full range of policy and economic incentives that could be directed toward people have not been encouraged to choose electric vehicles by the national government,” Perst said.
Proponents of more action will look to countries such as Norway, which last year became the first to sell electric vehicles past petrol and diesel vehicles. EV buyers receive various incentives such as zero import taxes, exemption from sales taxes and free use of toll roads.
The most popular electric car in Scandinavia – the Volkswagen Audi e-tron – sold for the equivalent of $ 92,000 Australian dollars and sold more than 9,000 units last year.
In comparison, only 64 e-tron vehicles were sold in Australia, where the model sells for nearly AU $ 150,000, largely due to import duties, luxury car tax and no financial subsidy to the buyer.
Behyad Jafari, chief executive of the Electric Vehicle Council, says the lack of any buyer incentives and fuel efficiency standards in Australia have made it difficult for car manufacturers. “New technology has a minimum price tag and with no incentive in place it will be difficult for customers to overcome the high ticket prices,” he said.
Global manufacturers often test new models under difficult conditions in a large Australian product, but they only offer about 28 electric car models in the country, and only two sell under AU $ 50,000. In comparison, more than 100 models are available in the UK alone.
Consumer experience with electric cars, coupled with relatively higher prices and limited cost infrastructure has contributed to the rollout of full speed vehicles in Australia. The country has more than 2,300 EV charging points but only 357 of those are fast-paced – capable of recharging a vehicle’s battery in less than two hours. In comparison, there are approximately 22,000 cost points in the U.S. state of California alone.
Some consumers refuse to go away from buying EVs, believing they need a supercharger in their garage when they all need it as a normal power point, Perst told ANU.
The industry says Australia needs to establish a reasonable timeframe for the elimination of petrol and diesel powered vehicles.
According to official estimates, only about a quarter of all vehicles sold in Australia will be electronic by 2030. However, that goes against Australian states’ targets to achieve zero net emissions by 2050. Jafari Council EV reveals that all new vehicles will need to be electric between 2030 and 2035 to be able to meet that target.
Fans of more EVs see reasons for optimism in Australia’s growing demand for new hybrid vehicles, which combine an electric motor with a petrol or diesel-powered engine. Sales rose to around 60,000 units in 2020, up 50% from a year ago. Some in the industry see this as a sign that there is a hidden demand among Australian buyers for greener vehicles.
The country is also seeing a small but fast-growing market for electric cars from Japan, forcing state and local governments to fill some policy gaps.
Most states now include a measure of EV planning. They set targets for the electrification of their own public vehicle fleets and provide funding for toll infrastructure. But rates vary widely.
For example, the Australian Capital exempts stamp and registration fees and provides interest-free loans at AU $ 15,000 for the purchase of electric vehicles. New South Wales no longer offers any financial incentives while Victoria and South Australia offer some discounts but are also demanding EV owners to pay road user charges.
For car manufacturers, it is important to have a consistent transition policy or strategy across the country.
“No matter what the state or federal governments do, the vehicles will arrive in the coming years because of consumer preferences,” said Scott Nargar, who works on government relations for the Australian branch of South Korean car manufacturer Hyundai. “We need to ensure the transition is smooth by ensuring our infrastructure is in place in Australia. “