Are electric cars a likely option for Australia?
Introduction to the media issue
Video clip at right: On October 28, Skye News televised a Nielsen report detailing the concerns of Australian consumers regarding electric cars.What they said...
'One of the big reasons we see low sales of electric vehicles is their high up-front purchase price'
Dr Benjamin Beard, an economist and Fellow at Resources for the Future
'Bloomberg Energy Finance estimates that electric and conventional vehicles will be of a similar price by 2025'
Josh Frydenberg, former federal Minister for the Environment and Energy
The issue at a glance
In October 2019, data released by the Federal Chamber of Automotive Industries (FCAI), the peak body for the automotive industry in Australia, indicated that overall new car sales were down 9.1 per cent compared to the same month last year, and year-to-date sales are down eight per cent over the same period in 2018.
Hybrid (combination electric and fossil fuel cars) sales, meanwhile, were up, and so were electric vehicles (EVs), although off a low basis. Surveys suggest that many car owners are retaining their current petrol and diesel vehicles until an EV they like and can afford comes onto the market, while others simply seem uncertain.
In December 2019, it was reported that Victorian and New South Wales governments are considering a new tax for EVs. This follows a report by Infrastructure Partnerships Australia which recommended a per-kilometre tax for EVs. This potential move has been condemned as likely to discourage the uptake of these vehicles which other nations are giving motorists financial incentives to purchase.
Australian governments and consumers do not appear to have a clear view as to whether electric cars are the future of private transport in this country and, if so, how to respond to them. Confusion seems to exist around the environmental impact of EVs, while operational questions such as availability of charging depots are not yet fully determined. Governments do not seem resolved on whether they will promote their uptake.