Australia is proving slow to kick the petrol habit with a quarterly snapshot of new vehicle sales, showing the move toward zero emission vehicles is slowing.
The Australian Automobile Association’s EV index showing traditional ICE vehicles fell from 83.19 per cent of market share in 2023 to 75.5 per cent in 2024. But these losses were mostly taken up by petrol/electric hybrids which increased from 8.38 per cent to 14.6 per cent of the market share.
Plug-in hybrids which still employ a petrol engine to recharge also doubled in share from .94 per cent to 1.95 percent.
Pure EVs however saw a flat growth at the end of the year and so market share increased only slightly from 7.48 per cent of new cars to 7.7 per cent
The figure do not include 2025 sales so far, when the NVES is being introduced and the good news about the rise of plug-in hybrids may be overshadowed by the end of the Fringe benefits tax exemption that will end in May.
The leading motoring body, the AAA which oversees all the state based motoring organisations compiles its quarterly report from the FCAI figures and the EV Council, giving it a fuller picture of all sales and the market share.
Two year trends
The AAA says the clear trend is two years of growth for hybrids but that the availability of Toyota models like the RAV4 might have a significant impact on this market.
It also noted in its statement that BEV sales and market share had peaked after Q2 2024 records and that the end of 2024 was the lowest in five quarters.
Incentives seem unlikely to turn this around as government rebates for EV purchases have now ceased in all states with last state standing, Western Australia due to cease its rebate in May.
The news might also pout cold water on PHEV sales that have been growing.
“Plug-in hybrids are currently exempt from fringe benefits tax, which can save buyers thousands of dollars when buying a new car under a novated lease. But this benefit will end in April 2025.”
Agrresive discounting and marketing, particularly by new players in the EV market most from China including Evs available for under $30,000 may still turn around the consumer reticence.
However range and charging infrastructure along with 36 per cent of respondants having concerns over repair costs, according to a AADA survey may still prove a significant barrier.
December quarter
Sales of hybrid vehicles continued to exceed those of electric vehicles in the last three months of 2024 despite losing market share amid a slowdown in car sales across the nation, according to the nation’s peak motoring body.
While the market share of hybrids fell from 16.70 per cent in the September quarter to 14.83 per cent in the December quarter, they still outsold EVs, which increased their market share to 7.42 per cent of sales – up from 6.59 per cent.
Its latest quarterly update shows the December quarter 2024 had the lowest light vehicle sales since the January quarter of 2023 fell 0.62% (from 289,098 to 287,294)
Electric vehicle sales rose 11.93% (from 19,057 to 21,331), which is still lower than the sales and market share achieved in the first half of 2024
Plug-in hybrid (PHEV) sales continued to rise – up 3.18% from Q3 with market share rising from 2.53% to 2.63%