Knowledge and familiarity with electric vehicles (EVs) could be the missing link in speeding up their adoption, with a new study published this week by NRMA indicating that if motorists knew more about EVs they would be more willing to buy them.
Australia has been a laggard in the uptake of EVs, but after a big burst in interest over the last two years that trebled the market share of electric cars in new car sales – up to around 10 per cent in some months – the growth has stalled.
According to Changing Gears: The Road Ahead for EV Adoption in Australia report, just 20 per cent of Australians planning to buy a vehicle in the next five years are considering an EV.
According to the survey that percentage increases significantly – to 32 per cent – among people who say they are already familiar with EVs.
Part of the problem, then, according to the report, is a lack of familiarity with EVs in general, with only 26 per cent of Australians feeling knowledgeable about the technology. Happily, nearly half (47 per cent) are eager to learn more about EVs, paving the way for increased adoption.
The report draws upon a nationally representative survey of 2,079 Australian consumers conducted online in February of 2024, weighted to reflect the latest ABS census data on key demographic variables.
Respondents who said they were not considering an EV for their next car cited a number of different concerns, including driving range (54 per cent) and charging times (53 per cent).
This highlights the prevalent lack of familiarity with EV technology and ongoing unease regarding long-distance travel and charging infrastructure, given that most Australians still drive less than 50 kilometres a day – well within the range of EVs.
Similarly, the report shows that, even as current EV owners remain confident in their cars’ sustainability and cost savings, many Australians remain sceptical, with only 30 per cent viewing EVs as the most cost-effective option, and only 42 per cent seeing them as the most environmentally friendly choice.
The high costs of EVs remains another ongoing barrier for consumers, with only three models in Australia available for under $40,000 and a limited second-hand market continuing to ensure that EVs are inaccessible to budget-conscious buyers and lower-income demographics.
This was reinforced by the report’s discovery that EV uptake has been strongest among drivers with an annual household income of over $200,000, families with children, and those in capital cities.
For those with the ability to afford the higher initial purchase price, however, the report also found that many consumers were unaware that EVs boast lower running and maintenance costs, making them more cost-effective over their lifetime.
According to the report, an average car driving 13,700 kilometres per year could save around $1,000 each year in fuel, or $1,200 with overnight off-peak charging.
NRMA Insurance CEO Julie Batch also recommended increasing support for the second-hand EV market and the introduction of standardised battery testing as two potential key steps to boost consumer confidence in EV technology.
“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,” said Batch.
“To tackle these issues, more investment and effort are needed in driver education to encourage adoption.
“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% of Australians interested in EVs are open to buying a used car, so this will be a practical option for many drivers.
The report also highlighted the increasing growth of EV uptake. In 2020, EVs accounted for less than 1 per cent of new car sales, but that has consistently doubled each year, reaching 8.5 per cent of light vehicle sales in 2023 and already hitting 8.4 per cent at the halfway mark of 2024.
“To capitalise on this momentum, we need policies and incentives to support the second-hand EV market, which will help make these vehicles more accessible, especially among some buyers who may be deterred by the upfront cost,” Batch concluded.
“Additionally, standardising battery health testing, similar to an odometer test, will be a positive step to building consumer confidence in the longevity and safety of these cars.”
Changing Gears: The road ahead for EV adoption in Australia is the first instalment of a two-part report produced by NRMA Insurance. The second report will include an analysis of EVs versus hybrid vehicles focusing on several critical aspects including cost comparison, repair considerations, battery recycling, and implications of public policies and government subsidies.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.
One could assume that like all technologies, the EV is subject to the Gartner Hype Cycle, that consists of five phases. The Nissan Leaf, introduced in 2009, as the first mass produced BEV, provided the Technology Trigger, the first stage of the Gartner Hype Cycle.
After the introduction of the technology, a Peak of Inflated Expectations was reached around about the time of the pandemic. Now we are heading into a Trough of Disillusionment where people are starting to prefer anything but BEVs, and perhaps battery prices are not dropping fast enough.
This is why this article is so important. It calls for education, or as the Gartner Hype Cycles calls it, the Slope of Enlightenment. And this will happen for any number of reasons, not least the introduction, acceptance and inclusion of V2G (vehicle to grid), and innovative battery technologies. These are some of the main tools to ensure that BEVs will finally enter the Plateau of Productivity. Once people start to realise that their BEV is literally an inexpensive mobile power station, and not just a car, and the technology adjusts for this, there will be no excuse not to have a BEV.
It was 2010 and if Nissan had taken this even half seriously instead of as a compliance vehicle, they could be leading the world with EVs instead of looking at a massive ICEberg crashing down on them and all the other legacy players.
Too many mushrooms for you. Are you Mr Gartner?
Well, if you ever needed confirmation that your fellow Aussies are not very bright, now you have it. With the help of the Murdochs, the gullible and sheep-like average Aussie has been co-opted to support the fossil fuel companies and legacy auto
Baaa-aaa-aaa-aaa!
The old media establishment is perfectly happy promoting the polluting and profiteering embedded forces who support the threatened old media. It’s the perfect circle of wagons in a losing war. Breathable air, sustainable, with less noise, and much more performance…….. what’s so bad about THAT !?.
We’re very good at letting foreign fossil fuel companies dictate our purchasing decisions and very good at allowing foreign resource companies steal our resources and sell them back to us vastly value added.
Hang on, we sell our farms, assets, utilities etc willingly. Not because we have no choice.
I bought a based Model Y just over 3 months ago and already done 6000 km. It’s the best vehicle I’ve ever driven. Think of it as a beef up/modernized ‘RAV4’ for the average mom and dad.
I’ve been using our solar panels to charge during the days and utilizing our council/shopping center charging points so I have spent about $10 to drive 6000 km. I don’t know why people don’t switch to EV already. It’s easily done if you have 2 or more cars in the family; 1 definitely can be a cheap MG or BYD EV.
I have been driving electric for 15 years and exclusively electric for 5 years. I think the most convincing factor for getting an EV is seeing it work for a friend, neighbour, relative or colleague.
Even 15 years ago when I did a conversion, the crucial factor was seeing someone else successfully driving around in a conversion.
I think generally speaking…the demand pretty well matches production, especially if you lump in legacy EVs which no amount of true “knowledge” would make them much more compelling.
There has been a lot of lies and deliberate misinformation about EVs by vested interests.This has to be considered in this. Whilst most people will resist change at first with encouragement and active engagement this changes. Articles like this are essential . Personally, I have been nothing but impressed by my XC40 twin for nearly 3 years of ownership.
Leaving aside the woeful infrastructure and early adopters, its all about the price. Just give us a cheap car with a free home charging kit and we will crush you in the stampede.
If Australians didn’t care about price, ALDI would not be here.
Its the market size of RHD thats the start of the problem.
I read the McKinsey mobility consumer pulse survey recently. If you take it at face value, half of ev owners in Australia are likely to switch back to ICE because their EV isn’t meeting their needs. It’s sobering reading.
Unfortunatey that is a private report, so I can’t read the original. This article states that these were consumer opinions from 15 countries since 2021, so many opinions would be based on early cars not available here like the Chevrolet Bolt. The stat quoted is that “29% of electric vehicle owners are considering a switch back to a traditional combustion engine car.” (my emphasis). https://cleantechnica.com/2024/06/27/unpacking-the-mckinsey-mobility-consumer-survey-henny-penny-edition/
Yes, I drive one, and will never go back to an ICE car.
Cue the gloaters infesting this site with their tales of enlightenment.
People talk about the trickle down effect. Yeah, thats the feeling of someone urinating in your pocket.
the high price of public charging is also a put off. sadly i have inadvertently discouraged many people from buying a n ev. i had to be truthful. the going rate of electricity is around 32c per kw. yet the public chargers are priced at 42-89c per kw. the cars are fabulous but the public chargers are an expensive ripoff and pathetic. when this is also fixed then the uptake will increase. we need more government owned public chargers. the private sector has stuffed it up.