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Highlights
- Electric vehicle sales in Australia grew by 17.7% over the past year.
- BEV and PHEV sales made up 9.5% of new light vehicles in 2024.
- Increased EV availability and affordability expected with new standards.
Electric vehicle (EV) sales in Australia have seen significant growth over the past year, despite rising cost-of-living pressures, according to recent data from the Electric Vehicle Council. As per the Australian Automobile Association’s EV Index, battery electric vehicle (BEV) and plug-in hybrid vehicle (PHEV) sales surpassed 85,000 units in the first three quarters of 2024. This represents a 17.7% increase over the same period in 2023, signaling an upward trend in EV adoption nationwide.
The EV Index reveals that BEVs and PHEVs accounted for 9.5% of new light vehicle sales in Australia for the first three quarters of 2024. This growth trend reflects not only increasing consumer acceptance but also highlights the importance of critical mineral producers that supply materials for EV batteries. Companies engaged in lithium, cobalt, and nickel production, such as ASX:__ Lithium Americas Corp (LAC) and ASX:__ First Quantum Minerals Ltd (FM), are expected to play a key role in meeting the demands of this expanding market.
According to Aman Gaur, Head of Legal, Policy, and Advocacy at the Electric Vehicle Council, Australia’s EV market has shown notable progress in recent years. He notes that the proportion of EVs in new car sales has risen from under 1% in 2019 to nearly 10% today. Gaur also highlighted the financial benefits of EV ownership, noting that electric vehicles reduce reliance on costly petrol and have lower maintenance requirements, ultimately saving Australian drivers substantial costs annually. Despite the economic challenges, more than 85,000 electric vehicles have been sold in Australia this year, and the market could achieve a record 100,000 sales by the end of 2024.
As EVs become more affordable, Gaur anticipates increased adoption rates in Australia, especially with the upcoming New Vehicle Efficiency Standard set to take effect in 2025. This policy aims to accelerate the introduction of budget-friendly EV options in the Australian market. However, Gaur also expressed concerns about the challenges facing widespread EV adoption. He pointed out that the removal of incentives in certain states, coupled with lingering concerns over EV technology, may slow growth.
He urged government authorities to continue implementing supportive programs that make EVs accessible for more households and businesses. Gaur also emphasized the need for the industry to address common misconceptions about EVs to drive future adoption. Industry stakeholders, including companies like ASX:__ Magna International Inc (MG), are working toward producing accessible EV components, supporting this transformative shift in the automotive market.
