Can Australia sustain positive trend in its transition towards e-mobility?

Highlights

• Australia is witnessing a gradual but significant transition towards e-mobility.
• The recent past has seen a surge in electric vehicle sales in the Australian market.
• The uptake of EVs can be compounded by robust government policies that ensure monetary incentives, instrumental regulatory alterations, and upliftment of charging infrastructure.

Over the last few years, the world has seen a change in people’s preference for electric vehicles. There has been a gradual but significant transition towards e-mobility. Australia is witnessing a similar change.

The EV market in the country has recorded a surge in the sales of electric vehicles (EVs) in recent times. Despite the global pandemic, there has been investments worth billions of dollars in the EV space. 

A glimpse of the Australian EV market

A recent report by the Electric Vehicle Council of Australia has highlighted:

• Sales of electric vehicles stood at 8,688 units in the first half of 2021, much higher than 6,900 units sold in full-year 2020.
• There are now 31 EV models for sale in Australia, of which 14 models are priced under AU$65,000. With the launch of new models, there will be 58 EV models in the Australian market by the end of 2022.
• There are more than 3,000 public chargers at over 1,650 locations across the country, of which 470 are DC fast chargers (50 kW and over) at around 250 locations.

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Related read: How will Electric Vehicles help Australia tackle the climate crisis?

Passenger electric vehicles
At present, there are 31 passenger electric vehicle models from 12 different carmakers available for buyers in Australia.

By the end of 2022, it is likely that 27 more electric vehicle models will be launched in the Australian market. Of the total, 20 would be battery electric vehicles, while seven will be plug-in hybrid vehicles. Hence, taking the total number of passenger electric vehicle models to 58 in the country.

Commercial electric vehicles
In the last one year, there has been an increase in the demand for light and heavy electric vehicle models from the freight and logistics sectors in Australia. However, the supply of commercial EVs remains limited in Australia.

In the Australian market, the demand for a light commercial van is mostly fulfilled by Renault, while supplies of minibus, specialised vehicles, and multiple truck-cab chassis come from SEA Electric. Some medium-duty models are supplied by the Volvo Group.

For commercial purposes, there will be new models over the next two years. 

Image source: © Mopic | Megapixl.com

What role does govt policy play in boosting the EV market?

A supportive policy setting by the government instils confidence in investors and drives big investments. The adoption of EVs can be compounded in Australia by well-defined government policies that ensure monetary incentives to the related stakeholders, instrumental regulatory alterations, expansion of EV market and upliftment of charging infrastructure.

The surge in sales in the first half of 2021 can be credited to the introduction of Australia’s best electric vehicle policy. The Electric Vehicle Strategy rolled out by the state government of New South Wales is aided by investment worth AU$500 million for boosting the uptake of zero-emission vehicles. Such developments in policy settings by the government encourage private sector investors for raising capital for the development of the industry.

Also Watch: Can NSW’s Electric Vehicle Strategy provide enough support for consumers to make the switch?

Also, the government announced AU$24.55 million for the development of charging infrastructure under the Future Fuels Fund. Earlier this year, the federal government had funded AU$21 million through its Australian Renewable Energy Agency.

Image source: © Ivelinr | Megapixl.com

However, several challenges stand tall on the path of progress of this industry. Australia is way behind several countries, owing to the absence of any national electric vehicle policy. To compete with comparable markets across the globe, Australia must administer a strong electric vehicle policy that would encourage greater investment in the EV industry.

Related article: Electric Vehicles Then & Now: Tracing The Near 200-Year History

Top carmakers to go 100% electric

The most renowned global carmakers are chasing the target to turn 100% electric: Jaguar Land Rover (2025), Volvo (2030), Mazda (2030), Ford in Europe (2030), Nissan (early 2030s), General Motors  (2035), Daimler (2039), and Honda Motor Company (2040).

Also, electric car manufacturers have set goals for themselves to develop a specific number of electric vehicle models in the coming years.

Audi has committed to enlisting a total of 30 electric vehicle models by 2025. Hyundai is looking forward to making available 23 models, while Groupe Renault is targeting 24 models and GM is set to offer total 30 models by 2025.

Bottom Line

The future of the EV industry in Australia hugely depends on the efficacy of efforts by the government as well as industry bigwigs. There is a need to put the screws on the requisite decisions which accelerate the sale of EVs in the market and incentivise the uptake of electric vehicles by consumers in Australia.

Also read: Are these the 10 hottest electric vehicles of 2021?