More Australians will consider purchasing an EV as we learn more about them with nearly half of those in the market for a new vehicle eager to increase their knowledge, according to new research released by NRMA Insurance.
The report, Changing Gears: The Road Ahead for EV Adoption in Australia, revealed 20 per cent of Australians considering purchasing a vehicle within the next 5 years are considering an EV.
And among drivers more familiar with EVs, that number jumps to 32 per cent.
According to the research, 26 per cent of Australians feel they have enough knowledge about EVs to make an informed purchase decision while nearly half (47 per cent) are keen to find out more.
The report revealed the factors holding Australians back from jumping into an EV.
These include concerns over driving range and charging times.
On top of that, a further 44 per cent of Australians are not considering an EV because they have concerns about battery fires.
But research shows EVs don’t present any greater risk of fire than internal combustion engine vehicles.
NRMA Insurance CEO Julie Batch says Australians need to be educated about EVs to bust the myths about range, anxiety, safety and cost.
She is also calling for the introduction of standardised battery testing to support the second hand EV market and boost customer confidence.
“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,” Ms Batch says.
“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 per cent of Australians interested in EVs are open to buying a used car, so this will be a practical option for many drivers.”
One of the biggest barriers to entry according to the report is the high cost of EVs with only three models under $40,000 and a limited second-hand market.
For budget conscious buyers, this has put EVs out of their reach.
But one thing customers are unaware of is that the low running costs and maintenance for EVs make them a far more cost effective choice over their lifetime.
The NRMA Insurance report shows an average car driven 13,700 kilometres per year could save up to $1200 annually in fuel.
And with battery technology improving and upfront costs expected to decrease, the report said this will make EVs even more competitive.
At present, only 5 per cent of Australians own an electric vehicle with almost 70 per cent owning a combustion engine vehicle.
The research shows the top five drivers of EV purchase include environmental sustainability concerns (65 per cent), reducing my carbon footprint (55 per cent), lower running costs (53 per cent), saving on fuel resources (43 per cent), lower maintenance (38 per cent) and the ability to use renewable energy to recharge (35 per cent).
But on the other side are barriers to EV adoption.
These include driving range (54 per cent), recharging time (53 per cent), affordability (52 per cent), lack of public charging stations (52 per cent), battery life – how many years will the battery be useful (50 per cent), risk of battery fires (44 per cent), higher overall cost of ownership (42 per cent) and inability to charge at home (39 per cent).
Range anxiety appears to be a key concern according to the report and this is a major factor for those not considering an EV.
Yet Australians drive within the range of today’s EVs daily.
Australians reportedly drive less than 50km on average while regional drivers make longer journeys more frequently.
But the typical EV range of between 300 and 500km would still cover most drivers daily usage.
In 2023, the Federal Government announced it would be directing more than $78m into a partnership programme with the NRMA to help create a national electric vehicle charging network that would offer 117 fast charging sites on popular highway routes at an average interval of 150 kilometres.
NRMA Insurance is putting forward five key recommendations to drive EV adoption in Australia.
- BUST THE MYTHS ABOUT EVs
NRMA Insurance is recommending education campaigns to increase knowledge and confidence in electric vehicles and provide up to date information.
These programmes should also provide the opportunity for drivers to get behind the wheel of an EV to become more familiar with them.
- CREATE CONFIDENCE IN THE CHARGING INFRASTRUCTURE
While the EV charging network continues to grow, there is still a lot of questions drivers have about where and how long and how much it will cost to charge their vehicle.
NRMA Insurance says there needs to be clear communication about charging costs and procedures to increase EV adoption and confidence.
- CREATE REPAIR CAPACITY
NRMA Insurance says repair and service of EVs is still a relatively new concept and are encouraging the upscaling of mechanics and modernising report repair supply chains to cope with the growing need from EV drivers.
This will also boost consumer confidence of owning an electric vehicle.
- BOOST SECOND HAND EV MARKET
Support the growth of the second hand EV market with policies and incentives. This would broaden the EV consumer base and overall market growth if there are more affordable EVs to buy.
- BATTERY HEALTH
NRMA Insurance is calling for standardised battery health testing and reporting.
There are testing tools already in existence but it is unregulated and testing at this point is not mandatory.
One proposal is to require annual battery health tests for all EVs which creates a clear and standardised assessment of battery health and build confidence in the long term viability of EVs.
