Australia’s Electric Vehicle Market: Insights and Challenges in 2023 - Simon Wakim

 

The Australian electric vehicle (EV) market experienced a significant uptick in 2023, with EVs making up 8.4% of all new car sales, marking a 120% increase from the previous year. This increase, however, was primarily driven by three models: Tesla Model Y, Tesla Model 3, and BYD Atto 3, which collectively accounted for over 68% of all EV sales. 

Despite having a diverse range of 91 electric car, van, and ute models available, the issue of limited supply persists due to the lack of regulatory standards compelling manufacturers to enhance supply and foster competition. According to the latest findings from the Institute of Transport and Logistics Studies (ITLS), cost remains a significant barrier, with 44% of Australians citing it as a reason for not purchasing an EV. 

Professor David Hensher of ITLS notes that while the market potential for EVs in Australia could reach around 40%, affordability will likely restrain further uptake. 

As Australia seeks to bridge the significant gap with leading EV nations like Norway, where 88% of new car sales are electric, the focus must not only be on educating consumers but also on overcoming the substantial cost barriers. Introducing more competitive EV manufacturers could play a crucial role in reducing these costs. 

Connect with Simon Wakim: https://au.linkedin.com/in/simon-wakim-252436300

Location: Sydney NSW, Australia

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