How Australia’s attitudes towards EVs are changing

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Electric vehicle sales reached new heights in 2024, with the rate of growth easing off compared to previous years, but still showing that new-car buyers are keen on battery-powered cars, SUVs and vans.

This sales boost is being reflected in a shift in how Aussies view EVs, with a recent study showing just how attitudes are changing.

The Australian Automotive Dealer Association (AADA) has recently released its EV and Hybrid Vehicle Wave 3 Insights Report, compiled by Zing Insights, which has already produced three similar reports.

Similar to previous studies in December 2022 and January 2024, the latest November 2024 survey by Zing Insights asked 2000 Australian drivers about their current and future car purchasing habits.

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Compared to the study before, more motorists said they'd be willing to buy an electric vehicle as their daily car, although only 28 per cent of those surveyed said this – an increase of just one per cent.

Compared to the previous year, 14% of people said they'd be happy to buy a second-hand EV as their main vehicle, a decrease of 1%. When asked if they'd like an EV as their secondary vehicle, these numbers jumped to 26% and 15% respectively.

As in previous instances, Australians are most hesitant about purchasing EVs because they believe they are too expensive, with 55 per cent of respondents citing this as a major concern.

The latest survey found that 57 per cent of people said this, whereas the previous one found 62 per cent, showing that cost is now less of an issue for potential buyers.

The current cost of living crisis is having an impact, however, with 64% of respondents agreeing that they're less keen to pay more for an EV compared to other fuel types because of the economic situation, up by 2%.

Respondents said on average, they're willing to spend an extra six percent to buy an electric vehicle over a petrol or diesel internal combustion engine vehicle.

The AADA also released a list of three key drivers and barriers towards EV ownership, with the data showing major recent changes in perceptions.

According to the AADA, 58 per cent of respondents reckon EVs are better for the environment (down from 67 per cent), 50 per cent think they're the future of vehicles (down from 63 per cent), while 48 per cent said they're cheaper to run.

However, factors stopping potential buyers from purchasing EVs include 55% of respondents saying they're too pricey (down from 62%), 49% thinking there's not enough charging stations, and 44% saying their home's not set up for it.

“These results highlight the significance of making sure policies designed to increase the adoption of electric vehicles take into account affordability and the availability of necessary infrastructure,” said AADA CEO James Voortman.

The recently introduced New Vehicle Efficiency Standard (NVES) is now in place, so it's essential that the system allows consumers to make informed choices without making vehicles unaffordable.

“For EV adoption to speed up, the industry and government need to join forces to tackle the issue of cost and make electric vehicles more appealing to buyers.”

Last year was a record for new electric vehicle sales in Australia, with 91,292 units delivered, a 4.7 per cent increase from the previous year. However, this was a significant drop from the triple-digit growth seen in 2023, with a major decline in Tesla sales contributing to the slowdown in overall electric vehicle sales growth.

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