The Rise of Electric Cars in Australia
The Rise of Electric Cars in Australia
Since the electric car’s introduction in the Australian market, electric vehicles have steadily gained popularity among locals. The move to more energy-efficient means of transportation isn’t just a passing trend. In this article, we take a closer look at electric car trends, ownership, and incentives with data from the Australian Electric Vehicle Industry Recap 2023 by the Electric Vehicle Council.
Key findings
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Electric vehicle purchases in 2023 have exceeded 180,000 units. This is more than double the number of purchases in 2022.
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ACT has the highest electric vehicle market share in Australia at 21.9%.
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Most electric car sales in Australia were made in metropolitan areas.
The state of electric vehicles in Australia
With so many government incentives and discounted finance options exclusive to electric vehicle purchases, going green has become much more appealing and affordable for buyers. The addition of so many new electric vehicle models from trusted manufacturers has also helped boost electric car sales in recent years.
Increased electric vehicle purchases
In 2023, the purchase of electric vehicles has surpassed 180,000 with an 8.5% market share. This is a significant increase from 2022 when less than 40,000 battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) vehicles were sold.
| EV market share in 2022 | EV market share in 2023 | Year-on-Year Change | |
|---|---|---|---|
| Australian Capital Territory | 9.7% | 21.9% | +12.2% |
| New South Wales | 4.0% | 9.0% | +5.0% |
| Northern Territory | ~1.0%* | 3.2% | +2.2%* |
| Queensland | 3.5% | 8.3% | +4.8% |
| South Australia | 2.0%* | 6.8% | +4.8%* |
| Tasmania | 3.7% | 7.8% | +4.1% |
| Victoria | 4.0% | 8.0% | +4.0% |
| Western Australia | 3.4% | 7.8% | +4.4% |
| Australia | 3.8% | 8.5% | +5% |
Source: Electric Vehicle Council EV Industry Recap 2023 & Electric Vehicle Council EV Industry Recap 2022
(*These numbers are estimates from the Electric Vehicle Council Australia EV Recap Reports)
When looking at the 2023 electric vehicle market share across Australia, there is a clear leader—the Australian Capital Territory had an impressive 21.9%. That’s more than double the amount of the state with the second largest market share of New South Wales with 9.0%.
Most states and territories are within close range of each other. Queensland has a market share of 8.3%, Victoria with 8.0%, Tasmania and Western Australia are both at 7.8%, and South Australia is at 6.8%. Northern Territory has the lowest electric vehicle market share with only 3.2%.
Even though most states and territories did not break the 10% mark in electric vehicle market share, it’s still a significant increase compared to last year’s numbers. In the Northern Territory, specifically, electric vehicle purchases more than tripled in 2023 compared to the same time last year. Given the smaller population and more remote location of the Northern Territory, having over 3% market share for electric vehicle purchase is still an impressive feat.
Overall, there’s a 5% increase in total electric vehicle market share in 2023 compared to 2022 in Australia. There have been marked improvements across all states and territories with most areas seeing an increase of over 4%.
Government incentives for electric vehicles
Incentives sponsored by the Australian and state governments have become key to the exponential growth of electric vehicle sales. The work to reduce costs by providing tax exemptions, rebates, and the like has significantly improved buyer interest and purchasing capabilities.
The enhanced infrastructure for electric vehicles has also convinced many potential buyers to make the switch to electric. With more charging stations around Australia, it’s become much easier for electric car owners to charge their vehicles.
A state-by-state breakdown of electric car incentives
Here’s a quick overview of the incentives you can get per state or territory:
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National – The Electric Car Discount provides Fringe Benefits Tax exemptions for novated leases and company cars. This is for all potential electric car buyers.
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Australian Capital Territory – Discount on registration and stamp duty. You can get free registration for electric vehicles. And a zero-interest loan of up to $15,000.
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Western Australia – Receive a $3,500 rebate for electric car purchases of up to $70,000.
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Tasmania - Receive a $2,000 rebate for new or used electric car purchases.
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Northern Territory – Discount on registration and stamp duty. There’s also the Electric Vehicle Charger Grants Scheme which offers residential and business grants when installing electric vehicle chargers.
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New South Wales – Stamp duty exemption and rebate for eligible electric vehicle purchases (concluded on 1 January 2024).
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Queensland – Electric vehicle owners may be eligible for a 1% discount on stamp duty and another discount on annual registration costs.
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South Australia – Electric car owners may be eligible for a three-year registration discount.
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Victoria – Electric vehicle owners are eligible for a registration discount.
Government incentives in some states have ended which could affect future electric car sales if there are no new incentives or rebates to take their place.
Electric vehicle ownership in Australia
A majority of electric car buyers in Australia come from outer metropolitan and inner metropolitan areas. The Electric Vehicle Council reports the distribution of sales in these areas as 43% and 39% respectively. Only 18% of new electric car sales were made in regional and rural areas.
The lack of electric car charging stations may be the reason why there are fewer electric vehicle buyers in rural and regional areas. Given the number of charging stations in metropolitan areas, it’s much easier for those living in the cities to use electric cars without sacrificing convenience.
Changing infrastructure to accommodate electric cars
The shortage of charging stations may be one of the biggest obstacles to the growth of the electric car market in Australia. As of 2023, there are over 2,700 electric vehicle charging stations in Australia. Although there seem to be a lot, they’re not distributed proportionally throughout the country. New South Wales and Victoria have the most charging stations with 229 and 205 respectively while the Northern Territory only has six.
In recent reports from the Electric Vehicle Council, there will be an estimated 870 new charging stations in 2024. This could encourage more car buyers to purchase electric vehicles and help those in rural areas who already own electric cars.
Other challenges for electric vehicle adoption
Electric vehicles are typically much more expensive compared to petrol- or diesel-powered vehicles. The high upfront costs do a lot to dissuade potential buyers. Another reason why people are passing up on electric vehicles is due to range anxiety. Earlier makes and models of electric cars couldn’t go very far without another charge. Nowadays, car manufacturers are prioritising range and are developing new electric cars that can run farther for longer.
Additional benefits for electric car buyers
Charging stations or using an at-home charger to power your electric vehicle can be much cheaper than fuelling up at a petrol station. Plus, since electric vehicles don’t require as much maintenance as their fuel-powered counterparts, you’ll also be saving on service costs. These savings may be minimal at first but over time they can save you hundreds if not thousands of dollars in the long run.
Another way an electric car can save you money is through an electric car loan. At loans.com.au, you can apply for an electric car loan and receive a special discounted rate. Not only will you be helping the environment, but you’ll be saving money along the way.
Electric cars in Australia forecast
The future of electric cars in Australia seems bright according to data from Statista, a global intelligence and data platform. The projected revenue of the electric car market in the country is expected to be $6B and grow to $9.6B by 2029. Australia’s electric vehicle market has the potential to grow further with more government incentives and infrastructures put in place.
Consumer preference is gearing more towards electric vehicles because they’re environmentally friendly and offer cost savings. Governments and private industries are seeing this shift in buyer needs as they build more infrastructure to support the growing demand for electric vehicles.
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