Electric Vehicle Uptake Shifts to the Suburbs

Author: Simon Wakim

In a marked shift in Australia's vehicle market, outer-suburban residents are now leading the charge in adopting electric vehicles (EVs). The latest data from the Electric Vehicle Council (EVC) reveals that a substantial 43% of EV purchases last year were made in outer-metropolitan suburbs, surpassing the 39% in urban centres. The figures highlight a growing trend that sees regional and rural areas combined contributing 18% to the overall sales.

Suburbanites Lead the Electric Revolution

The appeal of EVs in suburban areas stems significantly from the economic benefits they offer, such as reduced fuel and maintenance costs. Given the dependency on cars for longer commutes away from urban cores, these savings are particularly enticing. Accessibility to at-home and public charging infrastructure further enhances the practicality of electric vehicles for suburban households.

Financial Incentives Drive Adoption

The shift has been significantly influenced by the Electric Car Discount scheme, implemented in late 2022, which introduced a fringe benefits tax exemption for electric cars. This initiative allows employees to benefit from salary sacrifice arrangements, making EVs more financially accessible. Under these arrangements, a Tesla Model 3, priced at $67,000, can be leased comparably to a $40,000 petrol vehicle over five years, despite the substantial price difference at purchase.

Data from the National Automotive Leasing and Salary Packaging Association (NALSPA) supports this trend, showing that the top ten postcodes for EVs acquired through novated leases predominantly lie in these outer-metropolitan areas.

The Road Ahead

The substantial savings from GST-free benefits, like the removal of the 5% import tariff and reduced taxable income through salary packaging, are drawing more consumers to electric vehicles. These fiscal benefits are paving the way for a surge in EV adoption in suburban Australia, suggesting a promising future for electric mobility outside the city centres.

As the infrastructure continues to improve and government incentives make EVs increasingly viable financially, the shift towards electric vehicles is expected to accelerate, establishing the suburbs as the new frontiers of Australia's electric car revolution.

This shift not only represents a significant change in consumer preferences but also aligns with broader environmental goals of reducing carbon emissions and promoting sustainable living.

For more insights into this evolving trend, read the full report from the ABC here.

‍

Simon Wakim

Leading Sales Director and Electric Vehicle Expert