Push to Spark Up EV Policy to Drive Net Zero Ambitions
Australia needs more EV incentives to meet its 2050 net-zero target as sales slow down
Australia, Electric Vehicles, Net Zero, Incentives, Sales
Australia: A recent report highlights the need for more rebates and incentives to encourage drivers to switch to electric vehicles. This is crucial if the country wants to hit its 2050 net-zero target.
Sales of electric vehicles have hit a bit of a snag lately. The Electric Vehicle Council’s latest report shows that while over 110,000 cars are expected to be sold in 2024, the growth isn’t as fast as it used to be.
Four states have already pulled their electric car rebates, which isn’t helping. Plus, a sluggish economy and some confusion about these low-emission vehicles are making people think twice before buying.
By the end of September 2024, Australians had purchased over 85,000 battery-powered cars, which is about 9.53% of all new vehicle sales. That’s a decent number, but it’s not as impressive as last year.
Electric vehicle sales grew by 13%, and the variety of electric and plug-in hybrid models available has jumped by 50%. Still, it’s a slower pace compared to the record-breaking numbers from 2023.
Dr. Jake Whitehead from the Electric Vehicle Council pointed out that while there are more EVs on the roads than ever, the growth rate is what really matters. He emphasized that government and industry support will be key to speeding things up.
To meet the net-zero goal, Australia needs electric vehicles to make up over half of all new car sales by 2030. The report suggests aiming for one million EVs on the road by 2027.
The early removal of purchase incentives in states like NSW, Victoria, Queensland, and South Australia has made these targets tougher to hit. The report argues that financial support should stick around until at least 30% of EV sales are achieved nationally.
Aman Gaur from the Electric Vehicle Council believes reintroducing EV rebates and focusing on second-hand purchases could really help boost the market.
He also mentioned that misinformation about electric vehicles is hurting sales and that the government needs to step up and consider expanding purchase incentives.
Chris Jones from the Australian Electric Vehicle Association suggested that strategies like getting older petrol cars off the road and implementing a road user charge could also help increase EV adoption.
He noted that price cuts for some electric vehicles this year have helped sales, but improving economic conditions and lowering interest rates would also make a big difference.
Jones said he’d feel more confident about the market when EVs start making up over 10% of new vehicle sales. On a brighter note, the study found that fast and ultra-fast charging stations have nearly doubled in 2024.