Auto Express

KPMG: Electric cars should be subsidized for lower-income suburbs


Electric vehicles will reach the same price point as combustion-powered vehicles in Australia by 2031 but those living in the suburbs of our nation risk being left behind.

That’s according to professional services firm KPMG, which also predicts the average range of electric vehicles will increase from 340km to 480km during that time.

It compiled a report named Speed ​​up local tram absorption where it’s neededand has developed a platform that tracks EV volume at the postcode level and subsequent emissions reductions, as well as changes in electricity demand.

KPMG is not only calling for better electric vehicles and stricter emission standards like other agencies, but also buying incentives for cheaper electric vehicles and/or lower income households. to promote better reception in the areas where they will have the greatest impact on emissions.

It also suggests that electric vehicles should be subsidized for people living in areas with longer commuting distances, such as those on the outskirts of our nation’s major cities.

It notes a pattern in Austria where the fixed income tax exemption would increase based on a person’s distance to their workplace and the absence of public transport.

In this model, every kilometer beyond the original preset distance can be deducted for EV owners.

KPMG said that based on registration data, people living in the suburbs of Brisbane, Melbourne and Sydney were more likely to drive larger, less efficient vehicles, while those living in the suburbs of the city prefer smaller and more economical cars.

It warned that a theoretical emissions tax could further jeopardize the affordability of cars in areas where zero-emission vehicles are needed most.

“If they are beyond the affordability of lower income households, emissions taxes could jeopardize the affordability of cars for this group. [and] would lead to socially undesirable outcomes such as low-income households being forced to return to marginal conventional means. [i.e. the lowest priced vehicles with maximum allowed emissions]”Report notes.

“This could even slow down emissions savings rather than accelerate them.”

Parking in Australia’s outer suburbs favors older vehicles, while residents in these suburbs naturally have longer commutes.

For example, in Brisbane, inner-city postcodes have an average fleet age of less than eight years, while this number often exceeds 12 years in the suburbs.

KPMG predicts Sydney will adopt EVs at a faster pace than Melbourne and Brisbane, with a combined 11% of total passengers by 2031, although it does note that based on current trends, EV uptake, the government incentives and vehicle sales, which would have a “small impact” on overall emissions reductions.

That’s because KPMG predicts inner-city residents will switch to electric vehicles first, leaving their suburban counterparts behind.

It predicts the share of trams in the City of Melbourne will grow from 0.6% to 22.6% by 2031, with a total market share of 56.4% of all new cars in that postcode.

Likewise, Neutral Bay in Sydney will see electric vehicle market share increase from 0.31% to 23.4%, accounting for 70.8% of new car sales.

But in the more remote suburbs, it paints a different picture. Fairfield in Sydney, for example, had an EV market share of 0.04% last year and KPMG says it will grow to just 1.9% by 2031 for a total new car market share of 7.3%.

As another example, the report says the potential for emissions savings per vehicle in Craigieburn in Melbourne is almost 10 times that of inner-city Melbourne – 1074kg CO2 per year, compared with 165kg per year – due to the presence of old vehicles causes more heavy pollution. there with longer commutes.

The company also notes that the lack of an EV suitable for off-roading will likely hamper EV absorption rates.

By collecting this data on vehicle registrations, KPMG was able to identify the most popular vehicles in the Brisbane, Melbourne and Sydney metropolitan areas.

The Holden Commodore and Toyota land cruiser dominated in the outer suburbs of each city, although Toyota Corolla and Mazda 3 are also common in some suburbs of Sydney.

Moving closer to the heart of each city, Corolla is king with the arrival of Mazda 3 and Hyundai i30 Wall.

The Volkswagen Golf Course It is also the most commonly registered passenger vehicle in a large number of postcodes in Sydney and Melbourne, but is not the preferred code in any of Brisbane’s postcodes.

An unusual exception: Subaru Outback leads in a small pocket of Sydney including the prestigious Island of Scotland.

While the report discusses the most commonly registered passenger vehicles, its data also seems to include routes – although notably, not Toyota Hilux neither Ford Rangerare now Australia’s two best-selling vehicles, appearing to be the most popular in any of the three suburbs.

KPMG is not the only company compiling a report on electric vehicle adoption in Australia.

S&P Global Research released a report this year that said electric vehicles will account for 18% of total industry production by 2030 in Australia, ahead of plug-in hybrids (4%) but still behind hybrids (23%). , internal combustion vehicles (24%) and mild hybrid vehicles (31%).

It predicts the average price of an entry-level mid-size electric car will drop by $17,400 between 2021 and 2030, while the average price of an electric mid-size SUV will drop by $8490.

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button
Immediate Peak