Fri. Aug 12th, 2022

Analysts say Australian motorists are missing out on cheaper electric cars due to government passivity on climate change, with new data revealing that local models are far too expensive to compete with petrol cars.

As Australia falls further behind other nations on EV adoption, research published by Compare the Market on Friday gave us a clue as to why.

The report found that it would take 16 years for an electric car in Australia to become cost-competitive with a petrol vehicle thanks to a price difference of $ 40,000 in advance.

With such figures, it is no wonder that electric cars account for only 0.7 per cent of new car sales in Australia compared to around 15 per cent in the UK.

Nor is it due to lack of desire. A separate survey on Friday revealed that more than half of local motorists want to buy an electric car in the coming years.

Rupert Posner, a director of activist researcher ClimateWorks, said it was a catch-22 situation created by government inaction.

He said Australians can only buy a small selection of expensive electric cars compared to markets in Europe where cars are almost half the price.

“The challenge is to bring a wider range of models into the Australian market,” Posner said.

“To do that, there must be regulation or fuel standards that require reduced emissions.”

Get electric vehicles available

To understand how much Australians pay, let’s break it all down.

The electric car used in the comparison of the market analysis costs $ 67.205, while a petrol vehicle is listed at $ 28,990.

This means that despite fuel costs for petrol vehicles averaging $ 2531 per year compared to only $ 55 for the electric car, it would take 16 years before the cheaper local EV was competitive with a local petrol car.

If you bought a cheaper EV collection time, it would be much less, but these economical EV models are not available in Australia.

The analysis uses an expensive Hyundai Kona SUV, but even if you went for a cheaper vehicle, the best deal you could get would be around $ 50,000.

As the chart below shows, if you bought in the UK, you could pick up six different cars for less than $ 40,000.

And these prices would end up even cheaper due to government incentives – and in general, there are far more EV models in the UK market than here.

Why do we miss cheaper electric cars

Analysts say fuel standards are a major driver of wider availability in the US and UK; they work by giving manufacturers an overall benchmark, which they then have to adhere to across their overall car sales.

If they sell a lot of cars with high fuel consumption, they need to balance their sales of cars with low or no emissions like electric cars or hybrids.

This, in turn, encourages large manufacturers to save their lower margin, cheaper electric cars for large markets where emission targets are mandatory.

“Without a strong signal from the government, they are more likely to send vehicles to the big markets,” Posner said.

As the chart below shows, the Australian market is currently almost forgotten by the major manufacturers.

Of course, buying a car is not just about price.

Many people will pay more than the base price for a gasoline car because it meets their needs or desires.

And for these people, the EV offer can be compelling with maintenance as well as fuel costs far below those for petrol cars.

According to a survey by the Electric Vehicle Council (EVC) published on Friday, 49 per cent of Australians see themselves driving an electric car by 2030, while 54 per cent say they would consider buying one for their next car.

“There are some people for whom electric vehicles are already cheaper because of the way they use them,” said EVC CEO Behyad Jafari.

EV costs higher

Currently, EV manufacturing costs are 50 percent higher than gasoline cars, mainly due to battery prices and research and development.

However, EV prices will fall to an average of $ 41,184 by 2030, says the Bureau of Infrastructure and Transport Research Economics.

Jafari said electric cars are also an environmental necessity, noting that Australia has some of the most polluting cars in the world.

“You pay absolutely nothing for the pollution you create,” he said.

“Over 10 years, electric cars are more expensive because taxpayers are responsible for part of driving a petrol or diesel vehicle.

“But there is a price attached to pollution: it makes people sick and our environment worse.”

Cheaper options

Currently, there are no significant federal government policies to force the automotive industry to reduce emissions, while NSW and Victoria have implemented 50 percent emission reduction targets by 2030.

Victoria will, however, introduce a toll of 2.5ca kilometers on electric cars.

Alina Dini, CEO of the Whirl Consumer Experience Group, said there were two major ways to get cheaper electric cars.

One was the AGL subscription service, which provides used electric cars for rent for as little as $ 235 a week.

“The Good Car Company imports used electric cars from Japan that are about two years old and can be purchased for between $ 20,000 and $ 40,000,” said Dr. Dini.

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