New EV sales appear to have stalled and a new report shows myths and misconceptions may be standing the way of people’s purchasing choice.
Only one in five Australians is planning to buy an EV vehicle in the next five years according to the NRMA insurance research
However, this rate is more than 50 per cent higher, and close to a third with those already familiar with them.
The report highlights despite only driving 50km a day or less on average, range anxiety, charging speed and even misplaced fears about fires remain key barriers to their adoption.
The report coincides with another drop in monthly sales from the FCAI September figures showing uptake is lower in 2024 than last year.
The EU has also experience four consecutive months of EV sales drop and is calling on government help to boost the transition.
NRMA Insurance commissioned the market research company Ipsos for Changing Gears: The Road Ahead for EV Adoption in Australia, a report which gives a snapshot of the state of EVs in Australia
It argues boosting familiarity with electric vehicles (EVs) could be the game-changer needed to speed up their adoption.
The study shows that as Australians become more informed about EVs, their likelihood of considering them for their next car purchase skyrockets, paving the way for a more rapid shift towards EVs.
Myth busting needed
NRMA Insurance CEO Julie Batch says the report highlights the work needed to bust the myths about range anxiety, safety, and cost.
She also recommends increased support for the second-hand EV market and the introduction of standardised battery testing as key steps to help boost consumer confidence around EVs.
“Even with the progress made to date, there are a significant number of Australians still hesitant about purchasing an EV due to worries about driving range and cost. To tackle these issues, more investment and effort are needed to encourage adoption,” Batch says.
“The good news is that more affordable models are now becoming available. This expansion will boost the used car market and make EVs more accessible to a broader audience.
“The research shows that 58 per cent of Australians interested in EVs are open to buying a used car, so this will be a practical option for many drivers.”
Laser-like Focus
NSW Minister for Roads John Graham says some barriers are technical and logistical, but some are about driver attitudes and education.
“We need a laser-like focus on the specific barriers to EV take-up, to properly understand what’s slowing us down,” Graham says.
The report also found for those unfamiliar with EVs, cost doubts remain with only 30 per cent viewing EVs as the most cost-effective option, and just 42 per cent see them as the most environmentally friendly choice.
The report found for Australians not considering an electric vehicle for their next car, among their primary concerns are driving range (54 per cent) and charging times (53 per cent).
The report also noted that 44 per cent of non-considerers cite worries about battery fires, even though research shows road registered EVs do not present a greater risk of fire than internal combustion vehicles.
Read the full report here.