Electric vehicles (EVs) have transitioned from a lifestyle statement to a mainstream choice in Australia, driven by lower costs, improved infrastructure, and an influx of affordable Chinese brands. According to analysis from auction figures and NRMA data, former deterrents such as high upfront prices and weak resale values have largely been resolved, paving the way for a surge in sales accelerated by the oil crisis.
Market Shift
Nicole Taylor, a broker at Loan Market, reports that approximately one in three loans is now directed toward EVs. "I've been in the car sector for about 20 years, and over the last two, that cautiousness in the market has been disappearing fast," Taylor says. "Clients are comfortable that there's infrastructure for EV owners, that there are technicians that can actually service these cars, and spare parts will be available. All of those costs have come down dramatically."
Sales hit a record in May, with EVs and plug-in hybrids accounting for 30% of new vehicles sold, according to the Electric Vehicle Council. Tesla's Model Y was Australia's bestselling car that month, outpacing its combustion engine competitors. Meanwhile, Chinese brands including BYD and GWM-owned Haval have rapidly increased their market share, now accounting for well over half of Australia's EV market, according to Commonwealth Bank analysis.
Price and Infrastructure
The influx of new electric models has narrowed the upfront price difference from petrol vehicles, while EV buyers benefit from lower running costs. The NRMA's car ownership report found that at least five EVs are now priced around or below the $30,000 mark, all of which are Chinese brands. However, inadequate infrastructure remains the single biggest barrier to further growth. The Commonwealth Bank noted this week that a lack of public charging infrastructure represents the key obstacle to Australia adopting commercial EVs such as electric trucks.
Global Trends
The electric trend is evident worldwide, with a 26% year-on-year increase in EV sales in Europe, according to Benchmark Mineral Intelligence. The notable exception is the US, where EV sales are down more than 25% over the same period after government policy changes made owning an electric vehicle less attractive. In Australia, the market has matured enough that secondhand EVs are retaining more of their value, according to auction house Pickles, as buyers become more comfortable with battery longevity and secondhand use.
Three-year-old Tesla Model 3 vehicles, which used to resell in the low-$30,000 range, are now priced closer to $40,000, Pickles auction results found. Used BYD Atto 3 models that had been selling for about $25,000 are now priced at about $30,000. Brendon Green, general manager of automotive solutions at Pickles, says used EVs are now competing with petrol vehicles for buyers' attention. "What was once seen as a premium purchase is becoming a more practical option, particularly for people who are happy to buy used," Green says.
MotorMetrics' live analysis of vehicle inventory shows that three BYD electric hybrids—the Shark 6 and Sealion 6 and 7—are among the most sought-after vehicles at dealerships with the lowest levels of supply. Jake Sale, founder of the Perth-based MotorMetrics, says the car market is changing quickly. "Chinese cars are just super-popular now and the market is completely changing in Australia," says Sale.
