Electric vehicle sales soar to nearly 10% in Australia, igniting debate

In Australia, electric vehicle (EV) sales reached unprecedented levels, making up 9.5% of all new light vehicle sales in 2024. This surge is attributed to a remarkable 150% increase in sales compared to 2022, translating to approximately 110,000 units sold. The rise in popularity is supported by the introduction of 122 available EV models, a 50% increase from the previous year, and an expansion of charging infrastructure, with charging locations nearly doubling over the past year. These developments have boosted consumer confidence, alleviating concerns about range anxiety associated with electric vehicles. Market dynamics reveal that while EVs are gaining traction, they still lag behind traditional hybrid vehicles, which accounted for a 16.7% market share in the third quarter of 2024. The Government's policies and incentives have had a significant impact on the sales landscape, with states like New South Wales and the Australian Capital Territory receiving high ratings for their supportive policies. However, several states have recently scaled back their purchase incentives, which may affect future growth in EV adoption. The top-selling electric vehicles in Australia for 2024 include the Tesla Model Y, with sales of 16,697 units, followed closely by the Tesla Model 3 and BYD’s Seal. Moreover, the EV Council’s projections indicate that sales are expected to nearly double by 2026, driven by anticipated federal vehicle efficiency standards aimed at lowering costs and enhancing accessibility for consumers. Despite this significant growth, Australia's EV adoption rates remain considerably lower compared to other developed nations. In 2024, global averages indicate that about 20% of new car sales are electric, with the United Kingdom reaching approximately 25%, China near 40%, and Norway as high as 90%. Aman Gaur, the head of legal, policy and advocacy for the EV Council, emphasized that for Australia to align with international standards and achieve climate goals, more than half of new car sales must transition to electric by 2030. He urges government bodies to reconsider and expand financial incentives to facilitate critical mass adoption of EVs, including support for second-hand electric vehicles.