In 2023, there was a notable surge in interest in electric vehicles (EVs) within Australia, as EVs accounted for 8.4% of all new car sales—a remarkable 120% increase compared to the previous year. However, this growth was largely dominated by just three models: Tesla Model Y, Tesla Model 3, and BYD Atto 3, which together represented over 68% of the EV market.
Despite the availability of 91 different models of electric cars, vans, and utes, most are being supplied in limited quantities, a situation stemming from Australia's lack of a standard that would compel manufacturers to improve EV supply and encourage competition among newcomers.
The latest report from the Institute of Transport and Logistics Studies (ITLS) highlights that while one in three Australians is considering an EV purchase within the next five years, 44% cite cost as a prohibitive factor. Professor David Hensher, Director of ITLS, pointed out that although EVs have the potential to capture around 40% of the market, affordability remains a significant barrier.
Australia has a considerable task ahead to catch up with more electrified nations; currently, only 3.8% of new car sales are electric, significantly lower than countries like Norway, where the figure is 88%.
Educating prospective buyers about the benefits of electric vehicles can drive demand, but addressing the high costs is essential. Introducing more competing EV manufacturers and their successful marketing could help reduce these costs over time.