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SYDNEY – Australia is bucking the global trend of surging demand for electric vehicles, with poor sales of Teslas and other models despite the country’s important role in the global supply chain.
Only 7,000 electric vehicles were sold in the country in 2020, an increase of around 250, or less than 4% from the previous year, according to figures from the country’s Electric Vehicle Council, which represents the industry. . This compares to a 43% increase in electric vehicles (global sales hit 3.2 million even as global car sales slipped by a fifth.
Electric vehicles represent 4.2%, or 134,400, of all cars sold worldwide. In Australia, they make up just 0.7% of the million cars sold each year, making them one of the slowest adopters of clean car technology.
Australia, rich in resources, is one of the leading suppliers of key battery minerals for the electric vehicle segment. But its economy is also heavily dependent on fossil fuels – which proponents of more electric vehicles say is holding back the sector.
Industry experts blame the lack of a clear policy to promote electric vehicles, with the country’s conservative government seen as a major supporter of coal.
“Because we have a delayed national climate change policy and a reluctance to recognize the urgency of climate change, our national transport sector policy is laughable. In fact, it’s a slowdown policy on electric vehicles, ”says James Perst, lecturer in environmental and energy law at Australian National University.
A national EV policy was recommended by the Australian Parliament in January 2019, but there has been no movement on it. A scaled-down discussion paper on a “ future fuels strategy ” was released in February, but ignored previous expert recommendations and ruled out any financial incentives from the federal government to help motorists switch to electric cars. The document also did not suggest a clear target for sales of new electric vehicles.
“Essentially, the full range of political and economic incentives that could be mobilized to encourage people to choose electric vehicles has not been initiated by the national government,” added Perst.
Supporters for more action are looking to countries like Norway, which last year became the first where sales of electric vehicles overtook gasoline and diesel-powered vehicles. EV buyers benefit from a variety of incentives such as zero import tax, sales tax exemption, and free use of toll roads.
The Scandinavian nation’s most popular electric car – Volkswagen’s Audi e-tron – sells for the equivalent of A $ 92,000 and sold over 9,000 units last year.
In contrast, only 64 e-tron vehicles were sold in Australia, where the model sells for nearly A $ 150,000, largely due to import duties, a luxury car tax and the ‘lack of financial subsidy for the buyer.
Behyad Jafari, chief executive of the Electric Vehicle Council, said the lack of buyer incentives and energy efficiency standards in Australia has made it difficult for automakers. “New technology comes at a higher price and since there is no incentive in place, it becomes difficult for customers to overcome high ticket prices,” he said.
Global automakers frequently test new models under harsh conditions in Australia’s vast outback, but only offer around 28 electric car models in the country, only two of which retail for under AU $ 50,000. By comparison, over 100 models are available in the UK alone.
Consumers’ lack of familiarity with electric cars, combined with relatively higher prices and limited charging infrastructure, has contributed to a rapid deployment of fully electric vehicles in Australia. The country has more than 2,300 charging points for electric vehicles, but only 357 of them are fast-charging, capable of recharging a vehicle’s battery in less than two hours. By comparison, the US state of California alone has around 22,000 charging points.
Some consumers are reluctant to buy electric vehicles, believing it would require a compressor in their garage when all they really need is a regular electrical outlet, ANU’s Perst said.
Industry says Australia needs to set a realistic timeline for phasing out gasoline and diesel vehicles.
According to official estimates, only about a quarter of all vehicles sold in Australia will be electric by 2030. However, this contradicts Australian states’ goals of achieving net zero emissions by 2050. The EV Council’s Jafari points out that all new vehicles will need to be electric between 2030 and 2035 to be able to achieve this goal.
Supporters of more electric vehicles see reason for optimism in Australia’s growing demand for new hybrid vehicles, which combine an electric motor with a gasoline or diesel engine. Sales climbed to around 60,000 units in 2020, up 50% from a year ago. Some industry players see this as suggesting that there is latent demand among Australian buyers for greener vehicles.
The country also sees a small but rapidly growing market for used electric cars from Japan, prompting state and local governments to address some policy loopholes.
Most states now incorporate some degree of EV planning. They set targets for the electrification of their own fleets of public vehicles and finance recharging infrastructure. But the standards vary widely.
For example, the Australian Capital Territory exempts stamp duty and registration fees and provides AUS $ 15,000 in interest-free loans for the purchase of electric vehicles. The larger New South Wales offers no financial incentives, while Victoria and South Australia offer discounts, but also require electric vehicle owners to pay for the use of the road.
For automakers, it is important to have a consistent policy or transition strategy across the country.
“Regardless of what state or federal governments do, vehicles will arrive in the coming years due to consumer choices,” said Scott Nargar, who works on government relations for the Australian branch of the South Korean automaker. Hyundai. “We need to make sure the transition goes smoothly by making sure we have the infrastructure in place in Australia.”
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