EV sales in Australia got a boost in 2021. Tesla uptake and ownership in Australia started to show hockey stick growth as many more Australians decided to make the shift from ICE vehicles.
Diving deeper into 2021’s new Tesla ownership numbers revealed that Queensland edged Victoria in Tesla uptake during the year. I decided to compare these two states in our analysis as both Queensland and Victoria sold similar cars in 2020 of around 850 Tesla sales, while NSW sold 50% more Teslas so it was a fairer comparison.
Given the lower population and smaller new car market in Queensland, what were some of the reasons behind Tesla EV uptake in 2021 in the sunshine state that edged it’s uptake over the larger Victorian new car market?
Did subsidies help Queenslanders get into a Tesla in 2021?
After analysing 6,127 Tesla sales across Queensland and Victoria, Queenslanders edged Victoria in 2021 by 2% in Tesla uptake in 2021 compared to 2020. We saw Tesla uptake figures saw an uptake of 258% compared to 256% increase in Victoria. So how did the subsidies help Queenslanders?
Upfront costs of an EV is one of the main drivers behind the gradual increase in EV ownership in Australia and around the world. This has been helped by subsidies (lowering cost of initial purchase) and lower stamp duty being on offer by various states and territories.
Comparing the subsidies available to Victorians and Queenslanders in 2021, we observed that:
- Since July 1, 2021, Victoria has been offering a $3,000 subsidy under the Zero Emission Vehicles (ZEV) subsidy program, which from the recent numbers published by the scheme shows nearly 3,500 Victorian EV owners have taken advantage of it so far in the second half of 2021.
- Queenslanders on the other hand did not receive the upfront subsidy like Victorians did during 2021 but instead had lower registration and stamp duty costs.
That didn’t stop Queenslanders from buying more Teslas in 2021 and bucking the “greater EV adoption with subsidies” trend.
This could also suggest that Victorian buyers hesitated knowing that there is a Victorian ZLEV road user surcharge that was introduced July 2021, for every kilometer their EV travels. A similar type of tax currently doesn’t exist in Queensland for EV owners and didn’t create the same hesitancy in 2021.
Victoria saw greater impact of Covid-19 lockdowns
With greater EV subsidies offered to Victorians in 2021, there was good Tesla uptake noticed in 2021 compared to 2020. This led to 2,111 more owners picking up a Tesla in 2021 compared to the previous year where the sales hovered around 863. That’s with 2021 seeing several lockdowns in the state during 2021.
Queenslanders on the other hand did not have as much time in lockdowns as Victorians did in 2021 and that may have also influenced Tesla uptake figures with 3,053 new owners in the state during the year, which resulted in an increase of 258% over 2020 as previously discussed.
Price reduction in Model 3 saw more Queenslanders own one in 2021
The price of a Tesla Model 3 also came down during 2021 as Tesla’s Shanghai gigafactory production ramped up and parts supply was localised. In March 2021 for example, the 2021 Tesla Model 3 SR+ was priced at $72,741 driveaway in Queensland.
By comparison, the 2022 Tesla Model 3 RWD (equivalent to the SR+) in Queensland is now priced at $63,584 driveaway. That’s a saving of over $9,000 compared to 12 months ago.
This translated into a much greater uptake in Queensland in the second half of 2021 as Tesla uptake soared in the third quarter of 2021 with many more of new Tesla owners hitting the road in the state during this period.
EV Community getting together all around Australia
In my last Tesla uptake piece, I did miss the important role that many EV communities and owner clubs have been putting in to further increase the uptake. I appreciated that feedback and it highlights how much good work is being put in my owner communities across Australia.
In Queensland, like all other states, Tesla Owners Club of Australia held various events including EV experience days. It adds to the argument that once Australian drivers experience an EV, there’s a high likelihood that will become their next new car.
With the Tesla Model 3 SR+ becoming more affordable during 2021, many who experienced an EV through these events or through family and friends decided to order their very own. This showcased well up in Queensland and all across other states and territories too.
Predictions for 2022
Analyzing over 17,000 EV sales from 2021 reveals that nearly 3 out of every 4 EVs Australian owners purchased was a Tesla. In Queensland, Tesla dominated in EV sales and over 3,000 new owners got behind the wheel of their new Tesla in the sunshine state. Up 258% and edging Victoria in 2021.
For 2022 in Queensland, we expect the uptake trend to continue with over 4,200 expected in the state. This is in anticipation of the Model Y launch in the second quarter of 2022 along with various state initiatives such as the Queensland’s Electric Super Highway phase 3 works underway to reduce range anxiety for Queenslanders that some current ICE car owners may have today.
An area of hesitancy that could play a role in Queensland as well as the rest of the country for Tesla buyers is the long wait time on the deliveries, with many new Tesla orders not expected to be delivered before July 2022. We know the demand for Tesla and other EVs is there and many that have experienced an EV through the EV communities or their family and friends, want to order one and Tesla Model 3 is one of the more popular ones that Queenslanders and others will go for, leading to greater EV adoption across Australia.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.