How Australia can transition to an electric car future

Australia is making some progress in transitioning to electric vehicles (EVs), but we still lag behind much of the rest of the world. EVs comprised only 1.6 per cent of all new vehicle registrations in Australia in 2021, compared with the global average of 4.6 per cent. 

The government is pushing to increase EV numbers on the road to three in every 10 vehicles by 2030, and some manufacturers such as Subaru aim to sell EVs exclusively by the mid-2030s. Yet despite these efforts, EV take-up remains low and there is still reluctance among the population, despite lower ongoing cost in terms of fuel (electricity) and maintenance.

So what are the factors making Australians EV-shy and how can we overcome them in the short to medium term?

High sticker prices and range anxiety

EVs are more expensive to purchase than their internal combustion engine (ICE) counterparts and consumers still have real fears about running out of charge between top-up points.

As of January 2022, there are only 293 fast charging stations and 1,580 regular charging stations in a country of 7.7 million square kilometres. With most modern vehicle ranges topping out at 400-450km, the prospect of using an EV, at least at present, to make the Sydney to Melbourne run in the usual eight hours with one or two stops for fuel is pretty much out of the question.

For every 10 minutes of charge per kWh you get one kilometre of range. For a 50kW charging station, that means 50km of range in 10 minutes. However, anything above 50kW is considered ‘fast charging’ and those stations are still few and far between. In the near future, 350kW+ charging stations may become available, meaning the Sydney-Melbourne in eight hours route becomes feasible.

The Federal Government plans to establish charging stations every 150km on Australia’s main arterials over the next five years, and this may alleviate some of the range anxiety, but what about high prices?

Green loans and subsidies

One significant way to incentivise EV take-up is for consumers to educating buyers about their availability with other loans on the market. These loans carry more competitive interest rates and terms compared with ICE purchases and may help tip the balance, so educating buyers about their availability will be an integral part of speeding up the transition. 
Furthermore, a raft of EV subsidies, incentives, and collaboration with industry is what the Electric Vehicle Council believes is needed to get 1 million EVs on Australian roads by 2027.

Several states and territories also offer cheaper registration, purchase subsidies, rebates, and stamp duty reductions if they opt for EVs.

New South Wales, Victoria, Queensland, and South Australia offer $3,000 purchase subsidies as of 2022, while the ACT offers $5,840 worth of subsidies and rebates if you opt for an EV.

Power companies can also improve take-up by offering ‘super off-peak’ rates overnight when many people charge their vehicles. Government can also extend subsidies to homeowners that install solar power, though one barrier to home charging is the usual limit of 20AMP vs 32AMP, , a 300km range charge cycle would be reduced from 12 hours to just eight.

Smart power delivery could also mean better management of demand and lower power prices as time goes on, if consumers opt-in to centralised control.

What’s Next?

The CSIRO has models that show EV prices coming down to ICE levels by about 2030, if all else remains stable, so there’ll be even fewer reasons to buy an ICE vehicle instead of an EV. 

EV purchases are steadily increasing, and advances in technology and pricing will lead to a faster transition within eight to 10 years.