Report looks at Australia’s skyrocketing electric vehicle demand and claims comparable costs

A new report on the Australian electric car market shows there is enough demand for electric vehicle sales to triple this year. tally the record of 2021 – if low inventory levels allow.

Report authorized by the lender Plenti and prepared by consulting firm Voice mark – using a sample size of 3000 extrapolated over the entire population – found there is a need in the market for sales of nearly 60,000 electric vehicles here this year.

At the same time, the report also shows that electric vehicles cost about the same as gasoline and internal combustion engine vehicles over their lifecycles – offsetting higher sticker prices with lower operating costs.

The report also examines the financial and environmental impacts of combining electric vehicles with rooftop solar systems and batteries which, in the context of Australian households, are expected to become an industry. $8.9 billion (annual) industry by 2026.

It attracted more than 3000 responses to a survey, as well as publicly available data.

Throughout the report, there are a number of notable projections and metrics that explore Australia’s electric vehicle consumption and costs, as well as electric vehicle sales.

According to projected data from the survey results, demand for 58,000 electric vehicles will be sold in 2022. This is up from just under 21,000 last year.

However, it is worth noting that the actual supply of EVs is severely hampered by the limited supply due to the long lead times in production. Almost every manufacturer worldwide is currently struggling with global semiconductor shortage and COVID shut down their supply chains.

The report suggests that the average wait time for an electric vehicle in Australia is around 22 weeks, but this varies greatly by brand. When the Tesla Model Y launched last week, it had an initial lead time as low as 8 weeks but this has increased to around 35 weeks.

This ideal 58,000 EV sales figure would represent about 5% of new car sales expected in 2022.

There were 20,665 EVs sold in 2021, according to the Electric Vehicle Council. As of May 2022, a total of 8543 EVs have been sold according to registration data from VFACTS.

While this number may seem low as we are halfway through 2022, it should be noted that the 58,000 figure is purely based on demand and does not take into account full supply.

Also, Tesla sells cars in batches at the end of each quarter, so keeping this in mind, expect to have around 13-14,000 EVs sold out by the end of June 2022. Additionally, There are also plenty of new EVs hitting the market. next year, as Details in our calendar here.

The report says the broader outlook for Australia’s future electric vehicle sales depends on whether there is a boost in policy and financial support – something we’ve been seeing especially at the State level through discounts and tax exemptions stamped for the past year or so.

THAN: What incentives are available to electric car buyers across Australia?

The report predicts that electric vehicle sales could grow 6.5 times by 2026 with the right policy framework, which would bring the market to $7.5 billion.

The last federal government previously announced The future fuel and vehicle strategy is worth $250 million, of which $178 million will be used to roll out 50,000 charging stations across Australia.

It’s worth noting that the Australian Government has not announced any subsidies or similar incentives for electric vehicle purchases, nor has it responded to a request from the auto industry for emissions reduction targets. company as mentioned above. hereto increase consumption.

The report also addresses how electric vehicles are comparable to ICE cars in their lifetime.

An example situation is given that compares an EV and a “mid-range” ICE and finds that the overall costs after 15 years are roughly the same.

The mid-range ICE in this case costs $32,126 compared to the $46,970 price tag for an EV of the same size (which in this case appears to be the Hyundai Ioniq EV, including the $3000 State rebate) .

The cost difference is about $15,000 in this example, but a combination of lower registration and tax costs, lower fuel costs, and cheaper maintenance has narrowed the gap to about $2500. after this theoretical period of ownership – and that includes higher insurance costs than EVs.

In the same 15-year time frame, a new ‘premium EV’ ($58,625, very hard premium in practice) is predicted to cost a total of $96,592 while a ‘premium’ car The new ICE’ ($53,490 purchase price) is predicted at $101,083.

As a result, the so-called ‘premium EV’ is actually around 4% cheaper to own a ‘premium ICE’ car after 15 years, according to the research.

These numbers will of course change and change as things like oil and electricity prices fluctuate.

According to the survey, Australian consumers’ interest in electric vehicles revolves around affordability and range anxiety.

67% of survey respondents consider road charging a barrier to EV uptake, while 65% consider EV prices high and 56% say limited range.

Plenti Group is an Australia-based finance company, established in 2014 and providing loans in the automotive, renewable energy and personal lending sectors.

On the other hand, Accenture is an information technology and consulting (IT) company based in Ireland that conducts research and case studies for a wide range of clients from around the world.

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