National Electric Vehicle Strategy: consultation paper

SUBMISSION TO THE NATIONAL
ELECTRIC VEHICLE STRATEGY
CONSULTATION PAPER
OCTOBER 2022
CONTENTS

Section 1: Foreword 03

Section 2: AADA Key Points 06

Section 3: New Car Dealers are Key to the EV Transition 07

Section 4: Strategy Framework 08

Section 5: Barriers to EV uptake 11

Section 6: Fuel Efficiency Standard 15

Section 7: Financial Incentives 16

Section 8: Tax Reform 18

Section 9: Non-financial Incentives 20

Section 10: Charging Infrastructure 21

Section 11: Banning Internal Combustion Engine Vehicles 22

Section 12: Used Electric Vehicle Imports 24

Section 13: Industry Policy 26

Section 14: Questions 27

Section 15: Conclusion 35

Section 16: Appendix A 36

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Section 1

FOREWORD
The AADA welcomes the opportunity to Although these actions are essential if provide input to the consultation paper on Australia is to keep up with other the National Electric Vehicle Strategy countries, it is also important to realise
(NEVS). that there are still many unknowns in
relation to EVs. There are questions
The AADA is the peak automotive industry around the ability of the global industry to body which represents Australia’s supply enough EVs given the critical franchised new car Dealers. There are minerals requirements of batteries. There approximately 1,500 new car Dealers in are associated questions around when
Australia that operate some 3,100 new price parity will emerge.
vehicle Dealerships. Franchised new car
Dealers employ more than 59,000 people In the face of such uncertainty, the directly and generate more than $59 Government should reaffirm its opposition
Billion in turnover and sales with a total to placing bans on the sale internal economic contribution of over $14 Billion. combustion engine vehicles or any other
drive-trains.
The adoption of EVs will bring a range of economic, environmental, and social It should also avoid knee-jerk policy benefits to Australia and franchised new reactions such as opening up Australia to car Dealers will play a crucial role in imported older used EVs which are selling, servicing, and repairing these coming to the end of their life and pose vehicles, while also educating consumers. significant risks to consumers and
automotive businesses.
We are starting to see strong demand for
EVs, but the uptake in Australia is still The National Electric Vehicle Strategy is being hampered by high upfront costs critical and the actions that emerge from it relative to comparable ICE vehicles, should seek to provide Australians with supply constraints, lack of consumer access to a wide range of affordable EVs.
choice in the vehicles Australian’s want, The strategy should be ambitious, but it lack of charging infrastructure and range should also seek to be realistic and anxiety, particularly in rural areas. These flexible while seeking to avoid unintended challenges are well known and in recent consequences which would undermine years we have seen the beginnings of goals such as lower emissions, affordable
Government action, particularly at state vehicles, and vehicle choice.
and territory level, to encourage the uptake of EVs. In preparing this submission, the AADA
commissioned survey research to canvas
However, it is widely agreed that Australia views and experiences of Australian requires a more comprehensive, nationally drivers across particular areas relating to led EV strategy which will achieve the current behaviours and future vehicle important goal of reducing Australia’s intentions, including: vehicle emissions. To do this the NEVS will need to apply the essential emissions • The type of vehicle they currently drive standards and incentives that ensure (body style, age, fuel type); overseas Manufacturers direct their EV product to the Australian market. • Their willingness to purchase an
electric vehicle when replacing any of

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Section 1

their current household vehicles;

• Specific perspectives on electric and
hybrid vehicles (willingness to
consider, drivers/barriers of
consideration and price point analysis);

• Attitudes towards EVs and the role of
individuals in driving uptake.

The goal of this research was to assist us
with understanding the status quo of
mindset and attitude around EVs. We
specifically wanted to gain a reliable and
representative view from drivers
themselves. To do this, we surveyed
2,000 Australian drivers (representative by
age, gender and household location
across Australia). The results from this
research are included at Appendix A and
are referenced throughout this
submission.

James Voortman
Chief Executive Officer

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Section 1

Australia
3,026 Dealerships

Economic Contribution

59,669 $5.38 billion
Dealer Employees Dealer Wages

$2.74 billion $14.12 billion
Tax Contribution Total Economic Contribution

© 2022 Australian Automotive Dealer Association

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Section 2

AADA KEY POINTS

1. The adoption of EVs will bring a range of future economic,
environmental, and social benefits to Australia.
2. New car Dealers play an important role in supplying EVs to the
market, in maintaining and repairing EVs and in educating consumers
on EVs.
3. The primary goal of this strategy should be the reduction of vehicle
emissions.
4. The NEVS should be federally led and provide for the maximum
degree of national consistency.
5. The NEVS must duly consider structural EV supply constraints now
and in the future.
6. The NEVS must consider the unique features of Australia’s
automotive market and its consumers’ preferences.
7. Factors constraining the uptake of EVs in Australia include high
purchase price, lack of model choice, and lack of charging
infrastructure.
8. The AADA supports a Fuel Efficiency Standard which does not erode
choice or affordability.
9. A Fuel Efficiency Standard needs to be complemented by financial
incentives, tax reform, non-financial incentives and charging
infrastructure.
10. The NEVS should rule out banning internal combustion engine
vehicles or other drive trains.
11. The NEVS should rule out expanding access to older used imported
EVs which are coming to the end of their life and pose significant risks
to consumers and automotive businesses.
12. Australia should use its status as a supplier of critical battery
minerals, to encourage OEMs to supply EVs on the Australian market

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Section 3

NEW CAR DEALERS ARE KEY TO THE EV TRANSITION

The adoption of EVs will bring a range of fewer moving parts than ICE vehicles.
future economic, environmental, and However, they still require trained social benefits for Australia. As zero and technicians to provide servicing and low emissions vehicles become more repairs and some forms of maintenance, prevalent, new car Dealers will play an such as tyre replacement, may see an important role in supplying those vehicles increase in revenue.
to the market, as they sell the overwhelming majority of new cars in There will also be additional revenue
Australia. There are a range of projections streams which come with the emergence which show that the sales of EVs are set of EVs and Dealers will work with their to increase in the coming years. If the OEMs in assisting consumers with home expected level of uptake eventuates, new charging solutions, usage of vehicles as car Dealers are in a good position to mobile batteries and recycling of batteries respond to the logistical challenge of to name a few.
supplying and safely servicing these vehicles. It is also important to note that when
these vehicles do need repairs or are part
The Australian new car Dealer network is of a vehicle recall, they will require trained well placed to provide on the ground technicians due to the risk that EVs pose.
information and assistance in educating New car Dealers benefit from factory the buying public. Consumers have many training and are contractually obliged to questions on EV issues such as range, have appropriately trained workshop staff charging, performance, and others. working on state-of the- art vehicles using
Dealers working with their Manufacturers the most up to date tools and equipment.
can provide accurate information on these They commit significant investment to issues and also to facilitate training of their staff and are a major demonstrations of the EV technology. employer of apprentices.

In the past there has been a misunderstanding that the automotive industry in Australia is resistant to the adoption of EVs, because of a perceived threat to profit margins however this is not the case. Franchised new car Dealers work closely with their Manufacturers in developing inventory which reflects market preferences, and as this preference transitions to EVs our members will respond to the market.

Franchised new car Dealers employ more than 59,000 people nationwide, many of which are mechanics or service technicians. EVs may require less regular service and maintenance as they have

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Section 4

STRATEGY FRAMEWORK

The goals and the objectives of this strongest year of EV sales on record. EVs
strategy are broadly appropriate, but received a 7.7 per cent market share in
AADA is of the view that the primary goal September 2022, a record-breaking
of this strategy should be the reduction of figure. And while overall market share
vehicle emissions, both carbon emissions remains relatively low at 2.7 per cent,
and noxious emissions. Improving the there is a clear trend towards purchasing
uptake, choice, and affordability of EVs new EVs. According to AADA survey
will play an incredibly important role in results, 38 per cent of respondents said
helping Australia minimise its vehicle they are likely to consider an EV for the
emissions, but this strategy should also next vehicle they purchase, and 48 per
acknowledge that there are a range of cent are open to considering a hybrid
vehicle drive trains that will play a role on vehicle.
the journey to net zero by 2050. We
should not lose sight of the contribution of
hybrid vehicles which have experienced
phenomenal growth in Australia in recent
years.

AADA is also of the view that this strategy
should be nationally led and that we
should be seeking the greatest possible
degree of consistency across state and
territory borders. The risk of going down However, new car Dealers report that the
the state-by-state approach is that only reason more EVs are not being sold is
Australia ends up with a patchwork due to significant supply constraints, with
system in which access to and benefits of many customers being made to wait
EVs are not felt equally across the months and, in some cases, more than a
Commonwealth. While this will require a year to take delivery of their EV.
great deal of negotiation and engagement
between the different levels of It is important that the NEVS takes due
government, the Commonwealth is well consideration of potential EV supply
placed to lead this process and influence constraints now and in the future. In the
outcomes. coming years global demand for EVs will
reach fever pitch as governments’
While the objective of encouraging a rapid emissions regulations and incentive
increase in demand of EVs is noble, it regimes combine and influence consumer
means nothing if the accompanying purchasing habits. To supply the required
objective of increasing supply of amount of EVs at a global level it is
affordable EVs is not met. EV sales are commonly agreed that there will have to
booming in Australia. At the time of be a significant increase in mining activity
lodging this submission, Australia has just to manufacture the batteries which
experienced its best month ever in terms require critical minerals such as lithium,
of new EV sales and after the first nine cobalt, nickel, and copper. S&P Global
months of the year, 2022 is already the reports that mining executives expect

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Section 4 graphite demand by 2030 to be three supply larger, more profitable markets, times our global production capability. leaving Australia at the back of the queue
Meanwhile, the International Energy for some models. Australia’s proximity to
Agency predicts that battery and mineral automotive manufacturing centres and the supply will need to grow by ten times to nature of the markets we are importing meet international governments’ EV vehicles from should also be considered.
ambitions. Lithium prices increased seven-fold in just over a year by May The NEVS also needs to understand
2022, and cobalt and nickel prices consumer preferences in Australia and the doubled in that same time period, factors that influence those preferences.
showcasing the significant increase in In terms of the vehicles Australians are battery demand and a reason why it is buying, there is a clear trend away from difficult for Manufacturers to even small, medium, and large cars to small, consider price parity with their internal medium, and large SUVs and Utes. In combustion engine equivalent vehicles. AADA survey data, when asked what their
Projections from the Advanced Propulsion intended future vehicle purchase might be
Centre in the UK show that due to lithium compared to what they drive now, deficits, we could be 15 million battery respondents displayed a strong intention
EVs short of the global manufacturing to purchase medium-sized SUVs and requirements. The AADA does not pretend large SUVs, with consumers planning to to know what EV supply will look like over replace small cars with these larger the next decade, but it is a fact that vehicles. In turn, willingness to consider adequate supply is an important an EV is higher when the consumer determinant to more affordable EVs. intends to replace a vehicle with a light
car, light SUV or a small car.
The NEVS should also take account of some of the unique features in Australia.
In terms of Australia’s automotive market, there are several important considerations. For starters, Australia does not manufacture passenger vehicles and so imports 100% of vehicles, leaving us at the mercy of global Manufacturers who make decisions about which product and what volume of that product is sent to
Australia.

Approximately one million new cars are sold in Australia each year, making it a relatively small market in the context of the global market of 80 million new car sales per year. Australia is also a right- hand drive market and conventional wisdom states that global OEMs usually prioritise left-hand-drive production to

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Section 4

Our vehicle preferences are shaped by
factors such as perceived distances we
travel, the affordability of fuel relative to
other countries, and the lack of public
transport relative to other countries. None
of these factors are reasons to avoid
action to increase the uptake of EVs in
Australia, but they do need to be
considered in devising a strategy which is
achievable and does not undermine goals
of lower emissions.

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Section 5

BARRIERS TO EV UPTAKE?

To understand the actions required under Cost the NEVS, we must understand the factors holding back EV uptake. The main The biggest factor constraining uptake in concerns can be described as the three Australia is the higher upfront cost of
Cs – cost, choice, and charging. purchasing an EV. Despite the significant
savings in running costs, many consumers
are put off by the fact that EVs are
nowhere near price parity with ICE
vehicles. Our survey asked buyers who
are unlikely to buy/unsure about buying an
EV in future what the most common
reason for their hesitance was and 62%
cited the fact that EVs cost too much.

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Section 5

For comparison, two of the cheaper EVs
on the market are the MG ZS EV, and the
Hyundai Kona Electric Elite. They offer
comparable ICE vehicles:

Model Cost Model Cost Difference

2022 Hyundai Kona $31,9001 2022 Hyundai Kona $54,5001 $22,600
Elite Auto 2WD Electric Elite Auto

2021 MG ZST $33,9901 2022 MG ZS EV $48,9901 $15,000
Essence Auto Essence Auto

The reason for the price disparity is the
high cost of the lithium-ion battery which
is expected to decline over time. In the
meantime, some countries have sought to
bring down the cost of EVs by offering
financial incentives. Survey results show
that on average, almost 50 per cent of
customers are willing to pay some price
premium for an EV over the same petrol
vehicle. The customers said the overall
average amount more they’d be willing to
pay was approximately 6 per cent.
Respondents in a household with above
average income are far more likely (49 per
cent) to consider an EV than those in
below average income households (28 per
cent).

1
https://www.redbook.com.au/

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Section 5

Choice Deloitte’s Global Automotive Consumer
Study showed that overseas, 75-80 per
One of the biggest factors constraining cent of EV charging is conducted at home.
the uptake in EVs in Australia is the lack of Australians show similar tendencies to the choice, particularly among the vehicle rest of the world with 79 per cent segments that Australians prefer. The list expecting to be able to charge at home.
of EVs available in Australia bears little There are also related concerns among a resemblance to the list of top selling proportion of the population around the vehicles in Australia. A close inspection of lack of range of some vehicles and time it the 20 best-selling vehicles reveals that takes to recharge a vehicle.
Australians have unique vehicle preferences. The two top selling vehicles of 2021 are Utes, as are 7 out of the top
20 selling vehicles. Utes and 4WD vehicles contributed to 21.2 per cent of the new vehicles sold in 2021. At the time of writing this submission, there are no commercially available battery electric or plug in hybrid electric Utes available for sale in Australia, however one
Manufacturer has announced they will be releasing an electric Ute for ordering sometime in November 2022. The EVs which are at the more affordable end of the scale are often smaller vehicles which
Australians have been turning away from in recent years.

Charging

Lack of charging infrastructure is a major concern for many prospective EV buyers.
It was rated the second highest barrier for considering purchasing an EV, behind high purchase price. 55 per cent of those surveyed said it was a concern for them.
A recent consumer survey conducted in
New Zealand by The Driven, showed similar concerns for consumers there.
Purchase cost was rated as the highest deterrent to considering an EV, followed by driving range and accessibility to recharging stations coming in as the next two biggest purchase deterrents.

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Section 5

These concerns are by no means unique
to Australian consumers and governments
around the world have addressed these
through policy interventions. In learning
from other markets, it is clear that a
successful NEVS needs to embrace a
holistic approach, which includes all the
necessary and complementary
components required to increase demand
and supply of EVs. These components
include the development of fuel efficiency
standards; provision of a range of
incentives; investing in and coordinating
the roll out of charging infrastructure; and
other areas of change required.

It is not viable to deploy these
components individually or in isolation
from one another. They are
interdependent and need to be applied
together as part of a complete suite of
policies. The world is still in the early
stages of the transition to EVs, but the
lessons in markets that are more
advanced are clear. Standards, ambitious
incentives and charging infrastructure
need to be applied together and
complement one another.

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Section 6

FUEL EFFICIENCY STANDARD

AADA supports the introduction of a • Separate targets for passenger mandatory vehicle fuel efficiency vehicles/small SUVs and light standard that is fit for purpose. The commercial vehicles/large SUVs establishment of such a standard is a critical piece of the suite of policies that • Allow OEMs to trade credits with each will ensure Manufacturers prioritise new other and to transfer credits between zero and low emission vehicles for the their passenger vehicles/small SUV
Australian marketplace. The fuel efficiency fleets and their light commercial standard needs to be ambitious, but it vehicles/large SUVs fleets also needs to be achievable and developed by the Government in very • Super credits for ultra-low emissions close consultation with the Manufacturers vehicles, which count as more than 1 who will be the entities which will need to vehicle make the investments to comply with the standard. Australia has unique • Consideration of off-cycle emissions circumstances and will need a solution to reductions suit those circumstances.
• Review mechanism to consider
From the perspective of franchised new acceleration of targets car Dealers, we support a solution which
• Penalties for OEMs who exceed the allows our customers to access state of
target the art fuel-efficient vehicles, but which does not drastically reduce vehicle • Enforcement by the Department for affordability or choice. Infrastructure, Transport, Regional
Development and Local Government
AADA welcomes the fact that there will be
which administers Australia’s vehicles a more detailed consultation process for
standards the design of a fuel efficiency standard.
That separate consultation process will provide the platform for a more detailed discussion, but at this initial stage the
AADA identifies the following features as central to a well-functioning fuel efficiency standard:

• An average emissions (grams of CO2
released per kilometre) target for
OEMs, averaged across all the vehicles
they sell in a given period

• An appropriate timeframe to adjust to
the target

• Applies to all vehicles first supplied to
the Australian market, including used
car importers

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Section 7

FINANCIAL INCENTIVES

Australia has come to the party very late their decades long transition to ZLEVs
on incentivising EVs, lagging the likes of being 69 per cent of new cars sold in
the US and the EU. At the state level there 2020. National incentives offered included
are various incentives ranging from no purchase tax or VAT (which is 25%), no
rebates to stamp duty and registration road traffic insurance tax, and company
discounts. The level of total incentive can car tax discounts. Localised incentives
range from around $4,500 of support in included half price tolls, half price parking,
NSW to around $2,000 in Tasmania. This and use of bus and taxi lanes. A
level of incentive pales in comparison to centrepiece of Norway’s strategy included
countries which have performed well in providing grants for housing associations,
terms of EV uptake. which was implemented at a local level of
government.
The United States is potentially the most
appropriate market to compare with While the AADA appreciates the changes
Australia’s given the types of vehicles which have been flagged around FBT and
preferred, availability of public transport, tariff concessions for EVs, these are
the cost of fuel, and the distances modest incentives which do not apply to
required to travel. The US Federal all vehicles and/or all buyer types. We also
Government have used income tax credits welcome the action taken by state and
as a tool to encourage adoption of ZLEVs territory in terms of purchase incentives,
since it was first introduced in 2005. or registration and stamp duty discounts.
These credits currently total over $10,000 Again, these are modest and are not
AUD. equally available to all Australians due to
some states offering more or less
In Germany, they estimate BEVs now generous incentives than others.
account for 14 per cent of new car
registrations and announced they will be Markets with a high level of EV uptake
reducing financial incentives to purchase typically provide generous financial
ZLEVs from 2023 as the ‘vehicles growing incentives at the national level. Doing so
popularity makes government subsidies will mean that the benefits incentives
unnecessary’. Sales of ZLEVs almost bring through more affordable electric
doubled year-on-year, which was vehicles will be more widely felt by all
attributed to the subsidy scheme. Australians regardless of what state you
Purchasers could access up to $13,000 live in or whether you have access to an
AUD towards purchasing a full BEV and employer provided vehicle. We would
this subsidy is only being wound down welcome any discussions regarding any
now that the government there believes it incentives to encourage purchasing new
has provided enough momentum for the ZLEVs. The AADA’s survey found that 71%
change to keep continuing naturally. of respondents believed governments
should be incentivising customers more to
Norway is often cited as the leader and transition to EVs.
example when discussing what is possible
in ZLEV sales. While the challenges and
landscape in Australia differ significantly
to Norway, there are some learnings from

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Section 7

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Section 8

TAX REFORM

As part of the transition to EVs, Australia it continue to make passenger vehicles in
needs an urgent review of its Automotive Australia more expensive than they should
taxation regime. Each year, Australians be. Australia needs to modernise its
pay tens of billions in motoring taxes and automotive taxation regime to encourage
charges to governments. According to the affordable safe, clean, and efficient new
Bureau of Infrastructure, Transport and cars. The Government has identified road
Regional Economics in the 2019-20 safety, lower energy costs and emissions
financial year, more than $32 billion in reduction as priorities – renewing the
such charges were paid. national fleet by selling new cars supports
these priorities.
As fuel-efficient vehicles are increasingly
adopted and trends such as ridesharing The AADA notes that technological and
accelerate, Australia needs to consider societal changes to our personal modes of
the way in which we tax motorists and transport, whether it be the increased
create a system which is fit for purpose uptake of fuel-efficient vehicles or
for the future. At the federal level, a autonomous vehicles in the longer term,
considerable part of that tax revenue has will undercut current Commonwealth,
been drawn from the Luxury Car Tax State and Local Government taxation
(LCT). At a state and territory level we revenue streams. We urge the Federal
have significant stamp duty and Government to commence a program of
registration charges applied to vehicle consultation and establish a
sales. comprehensive automotive taxation
regime that is fit-for-purpose for these
These taxes are outdated and have been new realities.
discredited by various independent
taxation reviews. Australian governments
should work together to abolish or
restructure these taxes to provide
consumers and local Dealers with some
relief, particularly as the new car market
faces an uncertain future and supply
remains severely constrained. Applying
excessive taxes to new cars only
disadvantages consumers seeking to buy
vehicles which deliver greater safety as
well as environmental and fuel efficiency
benefits.

These legacy taxes were introduced in an
era when Australia still manufactured
passenger cars and maintaining them only
disadvantages consumers and local
businesses. Domestic passenger vehicle
manufacturing no longer exists, but the
tax structures that were there to support

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Section 8

BILLIONS inTaxed on cars
Australia.

$369M $591M
Tariffs LCT
$2.9Bn
Stamp Duty

$4.2Bn
GST
$982M
FBT

$2.6Bn
Tolls
$8.2Bn
Rego

$11.7Bn
Fuel Excise
$635M
Licence

Total Tax paid by Motorists: $32.2 Billion
Source: BITRE, Australian Infrastructure Statistics Yearbook 2019, Table T 3.3a Selected road-related taxes and charges, Financial Year 2019-20, p. 71.

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Section 9

NON-FINANCIAL INCENTIVES

Recurring and non-financial incentives can
play a positive role in encouraging EV
uptake, especially in regions where they
can have the biggest impact on
consumer’s daily commute such as urban
and inner-city areas. These types of
non-financial incentives are widely used
around the world. AADA supports the
consideration of including incentives for
EVs such as special lane access (carpool
lanes, bus lanes), parking incentives, and
road toll discounts or exemptions. While
some of these incentives may be enacted
at the council or local government level,
we believe the federal government has a
role to play in facilitating these
discussions with the appropriate
jurisdictions and encouraging a degree of
consistency.

These recuring incentives have the
opportunity to benefit not just new car
owners, but in the medium to long term,
those who purchase a used EV. Meaning
incentives and subsidies can be targeted
at those who are unable to afford the
upfront purchase cost of a new EV,
making it an appealing transition to make
from any older, more polluting vehicles.

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Section 10

CHARGING INFRASTRUCTURE

Charging infrastructure is currently being • US – Federal Tax Credit – $1,000 credit rolled out throughout Australia, but we will for residents that applies to EV charger need to significantly increase the number hardware and installation costs.
of options for EV drivers. Infrastructure
Australia’s (IA) priority list has an early • There are up to 30 different rebate stage proposal for a National highway offers across the US jurisdictions electric vehicle fast charging network. It is which vary based on location, utility appropriate that the Government treats provider and government agencies in the roll out of chargers as an the area.
infrastructure project and one that would take on a public private partnership • Germany – KfW-Bank – €900 for the character. purchase and installation of a home EV
charger.
In Australia vehicle Manufacturers have invested significantly in charging For many EV purchasers, at home infrastructure and we know that traditional charging simply is not realistic and fuel and electricity retailers are therefore continuing to install public considering a future where electricity charging infrastructure will be critical to replaces conventional fuel. The IA process supporting a growing EV fleet. Further provides an opportunity for a joint installation of charging stations, strategy to roll out charging infrastructure particularly in rural and regional areas, will with state governments, vehicle alleviate any remaining concerns
Manufacturers, electricity retailers and regarding range anxiety.
other private sector participants.
The inconvenience of time taken to re-fuel
Home charging is considered as a top a vehicle fully will recede with the change priority for consumers. Many consumers in culture that takes effect and fast who purchase an EV expect to be able to charging stations become more prevalent charge their vehicle at their home, and and faster, but in the meantime, it is a therefore it is important to consider the factor that is considered by potential infrastructure and retro fitting expenses buyers.
that will be required to facilitate this and the updates that need to be put in place for building codes.

Countries around the world have varying subsidies in place to encourage the installation of home charging infrastructure:

• UK - EV Chargepoint Grant – 75 per
cent or £350 towards the cost of
installing EV smart chargepoints at
home.

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Section 11

BANNING INTERNAL COMBUSTION ENGINE VEHICLES

The AADA is fundamentally opposed to imposed. Finally, in September, Toyota
bans being applied to Internal Combustion president Akio Toyoda called for the
Engine vehicles due the potential adverse Californian ban on new ICE vehicles by
consequences for the environment, 2035 to be reconsidered as “realistically
Australian consumers, and the automotive speaking, it seems rather difficult to really
industry and the people they employ. achieve that”. He claimed that EVs are
going to take longer than the media would
There are simply too many unknown have you believe and that bans simply
variables to proceed with a ban. The narrow the options available to find
uncertainty around the industry’s ability to solutions to removing CO2.
meet the demand for EVs means that
there are similar concerns around when California has been a leader in the US for
price parity for EVs will emerge. embracing emissions reductions, with 17
Consumers who will not be able to afford states following vehicle emissions
an EV will simply hold onto their older ICE standards that are tied to rules
vehicle for longer, leaving lower- and established there. They all need to make
middle-income earners with vehicles decisions about whether to follow the ban
which are more costly to run, less planned for 2035, and approximately 12
environmentally friendly and less safe. out of the 17 states have indicated they
Three out of five people are concerned might not be following suit. Minnesota is
they won’t be able to afford a vehicle if one of the states who have indicated they
there is a ban on the sale of ICE vehicles. don’t believe following the ban at the
same timeline is suitable for their
Proponents of a ban will point out that circumstances and to commit to that
there are several ICE bans in other global target would be premature.
markets, such as the UK (2030), the EU
(2035) and certain US states (California Australia is of course very different from
2035 and New York 2035). The AADA is those markets. For one the US and EU are
not certain that these markets will not all vehicle manufacturing powerhouses
revise their plans to ban ICE vehicles. which have had fuel efficiency standards
There are already signs that OEMs in and subsidies in place for decades.
those markets are questioning the
achievability of those bans. BMW CEO Furthermore, the ban on ICE vehicles in
Oliver Zipse recently warned that setting 2030 by the UK is not a standalone action
dates to phase out internal combustion item. In the UK’s plan to decarbonise
engine vehicles could remove affordable transport, they want to make public
vehicles from the market, placing transport, walking and cycling the first
ownership out of reach for many. The CEO natural choice for all who can use that for
of Stellantis made similar comments transport and reduce urban road traffic
saying that the implementation of the ban overall. The UK Government have invested
in 2035 will lead to ‘social consequences in installing cycling and walking schemes
that are not manageable’ due to the high and have committed Billions to continue to
cost being beyond lower- and middle- encourage this mode of transport. They
class citizens. He asked for a more have also committed Billions towards
affordable and transitional solution to be reshaping their bus network. The plan also

22 SUBMISSION TO THE NATIONAL ELECTRIC VEHICLE STRATEGY CONSULTATION PAPER | OCTOBER 2022
Section 11 includes ensuring rail transport is made to be more simple and cheaper for its passengers. In the Decarbonising
Transport Plan, they have set targets for
2040 to ensure the buses are zero emissions, and 2050 to deliver a net zero railway network.

The UK have a far greater range of EV options relative to Australia. In the US the top selling vehicles for 2021 more closely resembled Australia’s market with the top
3 cars being pickups or ‘trucks’, and the top 10 list contained only one small car.
This is in stark contrast to the UK for 2021, who had small cars or sedans occupy 7 out of the top 10 bestselling cars for 2021, and nothing larger than a small SUV. Many of the model options on the top 10 list in the UK had petrol, hybrid, or EV options to choose from.

Customers in the EU are naturally encouraged to look at alternate fuel sources to petrol or diesel due to the higher relative cost. In the Netherlands, petrol cost is above $3 per litre. According to the Australian Institute of Petroleum and despite recent increases, Australia still has one of the lower petrol and diesel prices of all OECD countries.

Australia will be a technology taker in the automotive industry. Manufacturing decisions made by both Governments and
OEMs abroad will dictate what product arrives in the Australian market. However, banning ICE vehicles is ill advised in such an uncertain supply environment. It could disadvantage lower- and middle-income earners and it could increase emissions if
Australians stay in their older more polluting cars for longer.

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Section 12

USED ELECTRIC VEHICLE IMPORTS

The AADA is strongly opposed to Despite the Government’s previously
increasing the supply of imported used ruling out a used car import policy, its
EVs on the basis that it will have adverse Specialist and Enthusiast Vehicle Scheme
outcomes for consumers; risk undermining is being used as a back door to bring in a
confidence in EVs among the Australian high-volume of used car imports. We
public; make Australia a dumping ground believe the SEVs should be restricted, and
for old lithium-ion batteries; and threaten any expansion should be roundly rejected
Australian automotive businesses. due to the Government’s previously
articulated concerns around consumer
The current system in Australia whereby protection and safety. While some
the overwhelming majority of our vehicles proponents will argue that used imports
come through an OEM type approval has provide an avenue to increase EV supply,
served the country well. Other than New this will come with the same risks as
Zealand, the importation of used cars has conventional vehicles and more.
not been used as a strategy to boost
vehicle supply by OECD countries - The importance of the need to consider
generally most grey imports are sent to consumer protections have been
developing countries. The influx of used reinforced by the Takata airbag recall.
car imports is why the average age of This was the world’s largest automotive
New Zealand’s vehicle fleet is over 14 recall affecting around 100 million vehicles
years compared to Australia’s which is just globally and over 4 million Takata airbags
over 10 years. In terms of road safety, in around 3 million vehicles in Australia.
New Zealand has a rate of road deaths The mandatory recall which followed, saw
per 100,000 population of 6.01 while in a phenomenal effort from Manufacturers
Australia it is 4.26. and their extensive Australian Dealer
networks to essentially complete the
The Government has considered opening largest automotive recall in Australia
Australia up to used car imports on history. The relatively small number of
several occasions and has consistently orphaned vehicles no doubt played an
rejected it on safety and consumer important role in the success of this recall.
protection grounds. It was rejected as an
option formally through the Government’s While EVs have fewer moving parts and
response to the Harper Review into require less maintenance than ICE
Australia’s Competition Law citing vehicles, they still encounter faults. One
“consumer protection and community need only consider the example of the
safety concerns”. This position was Chevrolet Bolt EV in the United States
upheld in the Government response to the which was recalled due to batteries
Senate Inquiry into Australia’s Future combusting spontaneously. General
Automotive Industry which supported the Motors advised owners not to park their
bi-partisan recommendation to maintain cars within 50 feet of other vehicles, not
restrictions on used car imports – again to charge their cars overnight and not to
the Government cited “potential safety keep fully charged vehicles in garages. All
concerns and difficulty in ascertaining the in all, the company was forced to recall all
vehicle’s provenance”. of the 141,000 units built. The fixes for EV
batteries will be more expensive and

24 SUBMISSION TO THE NATIONAL ELECTRIC VEHICLE STRATEGY CONSULTATION PAPER | OCTOBER 2022
Section 12 require significant expertise backed up by reason we should be pulling this task robust safety procedures of the like that forward and importing a disproportionate can only be adequately covered by the number of old batteries which may have a type-approval holding OEM and its very short lifespan.
network of factory trained technicians employed by franchised Dealers. In the The automotive industry is a key part of case of the Bolt, the lithium-ion battery the Australian economy. From a new car pack spans the full wheelbase of the car retail perspective, Dealers have made and weighs more than 430kg. It contains significant investments in the more than hundreds of battery cells which when 3,000 rooftops across Australia. These handled incorrectly during repairs, can be significant investments allow new car dangerous and increase risk of fires. Dealerships to have state of the art
facilities, with appropriate equipment and
The other concern that is often cited in tools as well as an adequate supply of reference to used car imports is the genuine parts. These investments allow difficulty in ascertaining a vehicle’s Dealerships to train technicians to factory providence. Odometer fraud, flood standards and employ a steady supply of damage and unrectified recalls are only a apprentices. Collectively, the result of few of the risks which come to mind. these investments is a sophisticated
These all apply to EVs and a recent network of authorised Dealerships which example in the US underscores how spans every corner of Australia and is important having a firm grasp of the equipped to service and repair vehicles, vehicle’s provenance is. The National uphold OEM warranty commitments, and
Highway Traffic Safety Administration conduct recalls.
(NHTSA) which administers vehicle standards in the US warned recently of This is a system which has served the risk of fires in EVs which have been Australia well as recently evidenced by exposed to saltwater. The warning the Takata airbag recall and which sees followed a series of EVs spontaneously many many more such examples play out combusting following saltwater surges every day all over the country. Opening caused by Hurricane Ian in Florida. Australia up to large volumes of used car
imports will ensure a number of vehicles
Another issue the Government should come in which will not enjoy the benefits consider before allowing used EVs to be of a type approval and the access to a imported into Australia is the risk that Dealer network. It will undermine the
Australia will become a dumping ground investments these businesses have made for old batteries which are coming to the and risk eroding the economic end of their lives. It is no doubt tempting contribution Dealerships make in terms of for other countries to disavow themselves employment, taxation, and the significant of the responsibility of recycling and donations they make to charities and disposing of batteries. These batteries other community initiatives. Most contain hazardous materials and can be importantly, it will also expose buyers of dangerous to recycle. The task of used EVs to significant harm.
disposing of these batteries will become a massive task and there is no doubt that There is no compelling case to open
Australia will need to develop the Australia to greater used car imports and capability to recycle/dispose of EV this argument holds ground for all batteries safely. However, there is no vehicles, including EVs.

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Section 13

INDUSTRY POLICY

The Australian mining industry is in a great volume given their strategy of exiting the position to be at the forefront of EV global right-hand drive market. The growth through our supply of critical Government has provided funding support minerals used in the battery production. for the development of our critical
With the scale up of mining required minerals sector and there may be an mentioned earlier in this submission, it is a opportunity to use our abundance of fantastic opportunity for Australia to minerals to influence OEMs and drive position itself as being key to global EV better EV supply outcomes.
supply.

Under the Inflation Reduction Act rules in the US, tax credits will only be made available to vehicles that have at least
40% of critical minerals in their EV batteries which must come from US miners or recycling plants, or mines in countries with free trade deals with the
US. This figure will increase to 80 per cent by 2027. Australia is well placed to provide the lithium, cobalt, nickel and copper to the automotive industry in the US.

This is an example of the US Government trying to bolster its EV manufacturing industry which stands to benefit Australia.
The AADA believes there is an opportunity for the Australian Government to use our status as a supplier of critical minerals, to encourage those OEMs to provide more
EVs back to the Australian market. Many
OEMs are now concluding supply deals directly with mining companies and we have seen such examples in Australia.

Recently, General Motors took a significant stake in Queensland Pacific
Metals, securing access to key EV battery materials in the process. While this is undoubtedly a great deal for GM, they are a very low-volume supplier in Australia after withdrawing the Holden brand in
2020. They also do not supply a single electric vehicle to the Australian market and even if they do decide to supply EVs to Australia, they will be of insignificant

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Section 14

QUESTIONS

1. Do you agree with the objectives, and demand outweighs supply prices
do you think they will achieve our invariably increase. The AADA is
proposed goals? Are there other concerned that there are supply issues
objectives we should consider? unique to electric vehicles which are likely
to persist for some time and that this may
Broadly speaking, the objectives of the undermine the objective of increasing
strategy seem to be well placed to deliver supply of affordable and accessible EVs to
on the goals set out in the National meet demand across all segments.
Electric Vehicle Strategy. Reduction of
vehicle emissions should be at the front
and centre of this strategy, leaving open
the option that other low emissions 2. What are the implications if other
vehicles like hybrids can play a major role countries accelerate EV uptake faster
in the transition to net zero. The strategy than Australia?
should ensure as much national
consistency as possible to ensure all In a supply-constrained world, vehicle
Australians benefit. Manufacturers will make decisions on
where to allocate electric vehicles based
The AADA would urge the Government to on several factors, including the
reconsider the use of the word “Rapid” in regulatory settings and incentive regimes
relation to the objective of increasing of the various markets in which they
demand for EVs. The evidence would operate.
suggest that demand for EVs is already
rapid with sales increasing more than Australia is already at a natural
500% for the first nine months of 2022. disadvantage to many other countries
Currently, demand is not the problem. when it comes to electric vehicle supply
Rather it is the ability to supply EVs, due its: right-hand drive status; position as
particularly within the vehicle segments a small market in global terms and its
that Australians prefer to buy. There are location far away from manufacturing
questions of whether the current centres. Furthermore, Australia has to
infrastructure and policy settings are date resisted many of the policy
sufficient to meet the rapid increase in interventions that other industrialized
electric vehicles. countries have adopted to stimulate the
uptake of electric vehicles.
Perhaps one contradiction exists between
the objective of “encouraging a rapid The AADA is of the view that the global
increase in demand” while simultaneously automotive industry will continue to
“increasing supply of affordable and struggle to satisfy demand for electric
accessible EVs …. Australia like many vehicles. The challenges of sourcing the
countries is currently seeing rapid critical minerals required for lithium-ion
demand for EVs and due to the difficulty batteries in the face of strong demand will
in meeting this rapid demand, we are likely see a finite number of EVs in coming
seeing supply difficulties and associated years which is unlikely to satisfy global
price increases for electric vehicles. demand.
Economic science dictates that when

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Section 14

Australia already has a low level of EV Federal Chamber of Automotive Industries uptake relative to other industrialised VFACTS publication which reports countries and if other countries accelerate monthly on new car registrations. In at Australia’s expense, the level of uptake making use of this metric, it is important will continue to lag. to note that new car registrations are not
the same as orders that have been placed
for EVs as there can be a lag between the
ordering and delivery/registration of a
3. What are suitable indicators to vehicle especially during periods of supply
measure if we are on track to achieve shortage.
our goals and objectives?
Affordability measures
Emissions
Electric vehicle prices will need to be
From the AADA’s perspective the most monitored to ascertain whether the goal important goal of this strategy should be of making EVs more affordable is in fact to reduce Australia’s vehicle emissions. In working. Importantly, pricing should be relation to measuring the emissions monitored across all vehicle segments performance of new car sales, one of the with particular focus on those vehicles most important indicators is the emissions popular among Australian motorists.
intensity work done by the National Measures separate to the affordability of
Transport Commission which makes use the vehicle should also be monitored, of the Federal Chamber of Automotive including electricity prices, servicing
Industries (FCAI) voluntary CO2 Emissions costs, insurance costs, etc.
Standard. It is important that emissions intensity for passenger cars and light Vehicle Choice
SUVs (MA category) and heavy SUVs and light commercial vehicles (MC+NA It will be important to understand which category) are assessed separately and makes and models of EVs are available for collectively. sale on the Australia market, but also
which EVs, Manufacturers are planning to
While new car sales are an important supply on the Australian market.
metric, they only represent about 5% of However, more important in ascertaining the entire vehicle fleet and it is vital that vehicle choice is knowing the allocation of we understand the emissions profile of all specific vehicle types for the Australian of Australia’s 18 million registered vehicles. market. For example, there are currently
A key part of reducing vehicle emissions is 45 electric vehicle models (including a ensuring that our vehicle fleet is renewed, total of 95 variants) available for sale in so that the oldest, most polluting cars are Australia – however, this means very little retired and replaced by new zero and if we do not know the allocation available lower emissions vehicles. for those specific vehicles. There are
currently several EVs for sale which due to
Uptake limited allocation mean that customers are
waiting many months and sometimes up
The suitable indicator for uptake is the to two years or are unable to place orders
due to allocations being exhausted.
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Section 14

Very closely linked to the issue of employ the following measures in unison
allocation is the issue of vehicle supply. It as part of a suite of complimentary
is no secret that the global new vehicle polices:
industry has been beset by supply
shortages brought on by the shortage of • Fuel efficiency standards which are
semi-conductors. There is evidence this ambitious, but achievable should be
issue is in the process of resolving itself, implemented with sufficient time
but EVs have unique challenges linked to available for the improved standards to
the critical minerals required for the be introduced.
manufacturing of batteries. As the
Australian Government continuously • Targeted financial Incentives, such as
assesses the impact of the NEVS, it rebates and taxation concessions
should leverage its relationships with should be made available.
Manufacturers to develop a good
understanding of the global supply • The development of a national EV
situation and its likely effect on the charging network made up of public
Australian market. and home chargers.

Charging infrastructure • Non-financial incentives, such as
access to priority lanes or parking
Naturally, ensuring infrastructure is in should be considered.
place to support EVs will require the
Government to maintain a thorough • Government and industry should lead
database on Australia’s EV public charging the way through electrifying their
infrastructure. This work should be done fleets.
in collaboration with state, territory, and
local Governments as well as private
corporations involved in the supply of 5. Over what timeframe should we be
public chargers. Developing this national incentivising low emission vehicles as
database will allow Government to assess we transition to zero emission
whether there are any gaps in terms of vehicles?
coverage which could provide signals to
public charging providers. It remains unclear how long the
Government will need to incentivise low
emissions vehicles, because this depends
on a number of factors, such as when
4. Are there other measures by
price parity will emerge; how quickly
governments and industry that could
consumer attitudes warm to EVs; what
increase affordability and
happens with the supply of low emissions
accessibility of EVs to help drive
vehicles and; whether geo-political factors
demand?
influence the emergence of EVs.
An effective National Electric Vehicle
Countries like the United States, the EU
Strategy will be nationally led so that the
and Japan have provided incentives for
affordability and accessibility of EVs are
low emissions vehicles for over a decade.
experienced by all Australians. It should

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Section 14

Germany which is seeing EVs make up accurate information as a source of truth almost 15 per cent of new car sales for consumers. The Government already recently announced that it would be plays such a role with the Green Vehicle phasing out EV purchase incentives with Guide, but there are clearly many other the Government saying they are no longer areas of education and information which required. The US on the other hand has could benefit customers considering an just passed new legislation extending EV as their next vehicle purchase.
credits through to 2032.
We believe there is a role for Government
It is important that the progress of the and industry to collaborate and in
NEVS is constantly reviewed, including the particular we would welcome a system in question of incentives, but at this stage which Dealers, which are the customer the Government should keep an open facing side of the industry, work with mind on the timeframe for low emissions Government to ensure that consumers are vehicle incentivisation. provided with the best possible
information by their trusted Dealer.

We have seen some good examples of
6. What information could help increase this in jurisdictions like UK where the
demand and is Government or Office for Zero Emissions Vehicles
industry best placed to inform provides useful resources for the public
Australians about EVs? and has partnered with the National
Franchised Dealer Association to develop
Many consumers are tentative about the Electric Vehicle Approved program making the move to EVs and are which accredits Dealers which embrace determined to educate themselves prior to EVs. Similarly, in the United States, various making a purchase. The more information public private partnerships have provided available to customers the better and their Dealer businesses with the opportunity to requirements range from basic information acquire EV certification.
which explains the difference between concepts such as ICE, BEV and PHEV to information specific to charging solutions and options. Consumers can also benefit 7. Are vehicle fuel efficiency standards from information on the various incentive an effective mechanism to reduce and concession regimes available in passenger and light commercial fleet different jurisdictions in Australia. At the emissions?
point of buying an EV many customers are also interested in vehicle-specific The evidence suggests that vehicle fuel information such as driving range, etc. efficiency standards in markets such as
Many will no doubt also seek information the United States and the EU have played on environmental benefits, running costs, an important role in reducing emissions etc. from passenger and light commercial
vehicles. However, in those markets
The AADA believes customers would vehicle fuel efficiency standards have not benefit from Government playing a role in and do not operate in isolation. They providing authoritative, impartial, and generally operate as part of a suite of

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Section 14

policies, including the provision of
purchase incentives for vehicles and
charging equipment; taxation settings • An average emissions (grams of CO2
favourable to low emissions vehicles; released per kilometre) target for
indirect incentives for low emissions OEMs, averaged across the vehicles
vehicles such as priority parking, use of they sell
rapid transit lanes or free entry to
congestion zones. • An appropriate timeframe to adjust to
the target

• Applies to all vehicles first supplied to
8. Would vehicle fuel efficiency the Australian market, including used
standards incentivise global car importers
Manufacturers to send EVs and lower
emission vehicles to Australia? • Separate targets for passenger
vehicles/SUVs and light commercial
Australian Manufacturers are unequivocal vehicles/large SUVs
in their support of fuel efficiency
standards on the basis that they believe • Allow OEMs to trade credits with each
such standards will result in other and to transfer credits between
Manufacturers’ head offices prioritising their passenger vehicles/SUV and light
new low and zero emission powertrains commercial vehicles/large SUVs fleets
for the Australian marketplace.
• Super credits for ultra-low emissions
vehicles, which count as more than 1
vehicle
9. In addition to vehicle fuel efficiency
standards for passenger and light • Consideration of off-cycle emissions
commercial vehicles, would vehicle reductions
fuel efficiency standards be an
appropriate mechanism to increase • Review mechanism to consider
the supply of heavy vehicle classes to acceleration of targets
Australia?
• Fines for OEMs who exceed the target
We have no comment to make on this as
we do not operate in the heavy vehicle
sector. 11. What policies and/or industry actions
could complement vehicle fuel
efficiency standards to help increase
10. What design features should the supply of EVs to Australia and
Government consider in more detail electrify the Australian fleet?
for vehicle fuel efficiency standards,
The lessons from countries with a
including level of ambition, who they
relatively high uptake of EVs are very
should apply to, commencement
clear. Fuel Efficiency Standards are only
date, penalties and enforcement?
one component of a comprehensive suite

31 SUBMISSION TO THE NATIONAL ELECTRIC VEHICLE STRATEGY CONSULTATION PAPER | OCTOBER 2022
Section 14 of policies. Incentives, both direct and 14. Should the Government consider indirect work as critical supplementary ways to increase the supply of second measures to a fuel efficiency standard. hand EVs independently imported to
the Australian market? Could the
safety and consumer risks of this
approach be mitigated?
12. Do we need different measures to
ensure all segments of the road Expanding the importation of used EVs is
transport sector are able to reduce a regressive, high risk solution. Advanced
emissions and, if so, what economies like the United States and the
government and industry measures EU have not resorted to such drastic
might well support the uptake of measures in their attempts to boost their
electric bikes, micro-mobility and used EV markets. This is a lazy policy
motorbikes? solution which will discourage
Manufacturers from supplying new EVs to
We have no comment to make on this as Australia; will place consumers at risk due we do not operate in these sectors. to lack of provenance of these vehicles;
and will leave Australia with the
unenviable task of recycling and disposing
of early generation lithium-ion batteries.
13. How could we best increase the
number of affordable second hand
EVs?
15. What actions can governments and
The best way to increase the number of industry take to strengthen our affordable used EVs is to ensure the competitiveness and innovate across highest possible uptake of new EVs which the full lifecycle of the EV value chain?
will eventually make their way onto the used-car market. Incentivising and Australia’s mining resources are crucial for encouraging Government and other fleets the world’s plans to electrify transport.
to turn over their EVs sooner is another Minerals such as lithium, cobalt, nickel policy lever which can help boost the and copper are abundant in Australia and number of used EVs available. critical components for EV batteries.
Furthermore, there is an opportunity to Despite our very important status as a improve affordability for low- and middle- supplier of these minerals, we are not income Australians who would struggle to using this status to influence the supply of afford a new electric vehicle by providing EVs to our market. Global Manufacturers means-tested incentives and favourable are now doing supply deals directly with financing offerings for used EVs. Australian-based mining companies and
the Australian Government should try and
influence these deals so that Australia
benefits from finished product being
supplied to our market.

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Section 14

16. How can we expand our existing emissions and stronger noxious emissions
domestic heavy vehicle standards. The Government’s 2016
manufacturing and assembly Improving the efficiency of new light
capability? vehicles Draft Regulation Impact
Statement modelled a $2.7 billion saving
N/A by 2040, based on a fuel efficiency
standard of 105gCO2/km by 2025. In
addition, BITRE analysis found that
implementing Euro 6d standards from
17. Is it viable to extend Australian 2027 for new model light vehicles and
domestic manufacturing and from 2028 for all new light vehicles would
assembly capability to other vehicle result in net benefits of almost of $5.3
classes? billion. While these benefits accrue over
two to three decades and go nowhere
N/A
close to replacing the revenue required to
fund roads, they should be considered in
interim period until 2027 when a number
18. Are there other proposals that could of State governments are considering
help drive demand for EVs and commencing a system of road user
provide a revenue source to help fund charging for electric vehicles.
road infrastructure?

The AADA is strongly of the view that any
road user charging regime for EVs should 19. What more needs to be done
be a nationally run initiative. AADA nationally to ensure we deliver a
acknowledges the need to consider nationally comprehensive framework
charging arrangements for EVs will for EVs?
increase as a greater proportion of EVs
In ensuring this strategy is Federally led
make up the fleet. To this end, we believe
and nationally consistent across state and
the Government should consider a period
territory borders, the Government should
of relief for EV early adopters before a
establish intergovernmental structures.
national system commences in 2027, a
This should be at the officials’ level and at
date which New South Wales, Western
the Ministerial level. The AADA would also
Australia and Tasmania have already
argue that the importance of embarking
flagged as a commencement period.
on a national approach - on such issues
As the automotive industry changes we as standards, incentives, skills/training,
should also consider a more centralised emergency services preparation, etc – the
automotive taxation regime in which the Federal Government should make use of
significant variations in registration partnership payments to states and
charges, transfer duties and licence fees territories to encourage all jurisdictions to
are more uniform. pull in the same direction.

There are significant financial and health
benefits which accrue from reduced CO2

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Section 14

20. How can we best make sure all
Australians get access to the
opportunities and benefits from the
transition?

There are significant risks that low- and middle-income Australians are left behind in the transition to EVs. Currently, the data shows that EVs are largely being purchased by people from higher income groups living in affluent inner-city areas.
Current state and territory Government incentives and tax concessions do not apply income testing. If the Australian
Government provides incentives and concessions like those applied in other industrialised countries, it should seriously consider means testing these incentives.
The likelihood is that wealthier Australians are likely to make the transition to an EV sooner and providing assistance to those who can least afford it is likely to have a greater effect.

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Section 15

CONCLUSION

We would be happy to meet with you to discuss our submission and participate in any meetings or roundtables. If you require further information or clarification in respect of any matters raised, or a list of reference please do not hesitate to contact me on:

James Voortman
Chief Executive Officer
M: 0452 535 696
E: jvoortman@aada.asn.au

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Section 16

APPENDIX A

SUBMISSION TO THE NATIONAL ELECTRIC VEHICLE STRATEGY CONSULTATION PAPER | OCTOBER 2022 36
EV & Hybrid Vehicle Insights Report

Prepared by: Nick Dawes

Zing! Insights | 64 Ludstone Street Hampton VIC 3188 | nick@zinginsights.com.au | ABN: 917 697 307 71
TABLE OF CONTENTS

Report Section Page Number

Introduction & Background 3

Executive Summary 5

Current Vehicles 10

Replacing Vehicles In Future 15

A Focus On EVs 25

Appendix: Sample Structure 34
Research Objectives

The objectives for this research can be summarised as to…

“ gain a robust and representative perspective on electric and hybrid vehicles
among Australian vehicle drivers
”
The research sought to canvas views and experiences of Australian The goal of this research was to assist the Australian Automotive
drivers across some particular areas relating to current behaviours Dealer Association (AADA) with understanding the status quo of
and future vehicle intentions, including… mindset and mood around EVs. While there is plenty of industry and
• The type of vehicle they currently drive (body style, age, fuel Government talk around future policy-setting and transitioning to
type); EVs, it’s important to gain a reliable and representative view from
drivers themselves.
• Their willingness to purchase an electric vehicle when replacing
any of their current household vehicles; To do this, we collected feedback from a sample of 2,000
Australian drivers (representative by age, gender and household
• Specific perspectives on electric and hybrid vehicles
location across Australia).
(willingness to consider, drivers/barriers of consideration and
price point analysis); The results from this stage of research are detailed in this
• Attitudes towards EVs and the role of individuals in driving document.
uptake.

3
Research Approach

THE RESEARCH PROCESS…

A series of A professional
questions were market research
developed to programmer, panel
address the supplier and host
research was used to access
objectives respondents

A nationally A survey taking 10
representative sample minutes was
of 2,000 vehicle administered
drivers was the target between 14th and
audience 21st September 2022

The following report was developed to highlight
findings from the research process

4
Executive Summary

An overview of our key research findings…
Overview | Feedback On Electric Vehicles

KEY DRIVERS FOR EVs…
1. ‘Better for the environment’
2. ’Represent ‘the future’ of vehicles’
3. ‘Cost less to run and maintain’

BARRIERS TO EVs…
1. ‘Are too expensive’
2. ‘Not enough charging infrastructure’
3. ‘Not enough driving range between charging’
WOULD CONSIDER AN EV
38% FOR THEIR NEXT MAIN
VEHICLE
EV PRICING…
• Cost of EVs are a barrier for consumers – 60% agree that ‘given the
AVERAGE PRICE current economic times, I’m less willing to pay more for an EV over
6% PREMIUM CONSUMERS
WOULD PAY FOR AN EV
other fuel types’.
• However, there is some willingness to pay more for an EV vs.
traditional fuel type of the same vehicle (49% would be willing to pay
some premium). On average, the level of this premium is up to 6%.

6
How Does Openness To EVs Vary?

Different audience sub-groups react differently to the idea of considering an EV for their next vehicle…

MORE OPEN TO EVs LESS OPEN TO EVs

• Drivers aged under 50 years • Drivers aged 50 or older
• Those living within 10km of a major city • Those living in rural communities
CBD • Women
• Men • Drivers who would be looking to replace
• Drivers who would be looking to replace their vehicle with a medium SUV, large
their vehicle with a small SUV, light car or SUV, large car, sports car, ute or van
small car • Drivers who would be likely to replace their
• Drivers who would be in the market for a current main vehicle with a used vehicle
brand new vehicle • Those who are looking to replace their main
• Those who are looking to replace their main vehicle in the next 12 months
vehicle in 4-5 years’ time

From this, we can build a profile of the current EV target market as those living in inner city areas who have a preference
for smaller vehicles. Furthermore, EV consideration matches more closely with a mid-term (rather than short-term)
purchase decision, suggesting they’re still seen as ‘for the future’ rather than ‘for now’.

7
Current Attitudes To EVs
Current driver attitudes towards EVs highlight the level of concern held around the personal financial impact of buying one.
• Drivers are strongly in support of increased government incentives to support the transition to EVs (remember – they told us
elsewhere in the survey that they believe EVs to be ‘the future’).
• There is concern among three in five (61%) about government policy which would ban the sale of conventional fuel vehicles and
the impact this would have on vehicle affordability for them.
• The current economic context (increasing interest rates, high inflation, increased cost of living) only serves to increase concern –
three in five agree that they’re less willing to pay more for an EV over a conventional fuel vehicle given the current times.

TO WHAT EXTENT DO YOU AGREE OR DISAGREE WITH THE FOLLOWING?
[% ‘AGREE’ SHOWN]

71% 61% 60% 56% 55%
“I’m concerned I “Given the current
“Governments “EVs don’t have
won’t be able to economic times, “The rising cost of
should be enough driving
afford a vehicle if I’m less willing to petrol/diesel
incentivising range for me to
govts ban the sale pay more for an EV makes EVs more
customers more to consider buying
of conventional over other fuel attractive to me”
transition to EV” one”
fuel vehicles” types”

8
Key Research Headlines
Here are the key findings from our survey among 2,000 Australian drivers…

An intention trend towards EVs are more engaging for some The benefits of EVs are clear, and
medium-large SUVs... drivers than for others. they do represent ‘the future’.
Our data indicates a trend away from Overall, 38% are open to considering Drivers have a clear view that EVs are
small cars to medium SUVs (and to a an EV for their next main vehicle indeed better for the environment and
lesser extent) large SUVs in future. driven. However, this is stronger for firmly believe that they represent the
Those who are considering these some cohorts (men, inner-suburban, future of Australian motoring.
larger vehicles are less open to aged under 50) than others (women, In addition, there’s a sense that they
considering an EV – what does this rural, aged over 50). would be cheaper to run and maintain.
mean for the transition to EV?

Cost of EVs is undoubtedly a key The question of ‘function’… Where does this leave us?
consideration and inhibitor right In addition to concerns about cost, On balance, our study suggests that
now. other barriers include a sense that EVs are considered inevitable by
Despite these benefits (which are there isn’t enough EV charging Australian drivers.
mainly social benefits), the cost of EVs infrastructure and that driving range is However, a combination of perceived
is a major barrier for some. too low between charges. lack of functionality (via charging
People will always weigh up the This is reflected in the fact that people times/driving range/lack of
benefits and costs for their own who are looking for their next main infrastructure) and – more importantly
household, and right now the cost of vehicle to be a medium-large SUV or – higher cost of purchase makes EVs
EVs is acting as a major barrier. ute/van are less likely to consider an feel like something for the ‘mid-term’
EV. rather than for ‘right now’.

9
Current Vehicles

A quick profile of our respondents’ current vehicle ownership status…
Current Vehicle Profile…
Within our sample, the most commonly driven vehicle types include small cars (25%), medium SUVs (23%) and medium-sized
cars (17%). Overall, SUVs make up 41% of current main vehicles driven, with cars making up 51%.
When it comes to current main vehicle fuel types, unleaded petrol vehicles are significantly the most prominent at present (82%), with
hybrid and EV cars combined contributing just 2.1% of current main vehicle fuel types.

What sort of vehicle is the one you mainly What fuel type does the vehicle you mainly
drive right now? drive currently use?

25% 82%
23%

17%

10%
8%
4% 5% 4% 15%
1% 2% 2% 2%
0.4% 0% 0.1%
Small Medium Large Light Small Medium Large People Sports Utility Van Ot her
SUV SUV SUV Car Car Car Car Mover Car
Unleaded Diesel LPG Hybrid EV

Q10. & Q11. Base: total respondents (n=2,000)
11
Vehicle Age & Other Household Vehicles

How old is the vehicle you mainly drive? In total, how many vehicles are there in your
household?

Under 12 months
5%
old
Between 1-3 years 50%
15%
old
36%
Between 3-5 years
23%
old
14%
Between 5-10
30%
years old
Older than 10
27% 1 2 3 or more
years

Just over half of our sample suggest the vehicle they mainly drive is older than 5 years old (57%), with 27% of this mainly driving a
vehicle that is more than 10 years old.
Exactly half of our sample have more than one vehicle in their household at present (50%), with 36% having 2 vehicles and 14%
having 3 or more vehicles across their household.

Q9. & Q12. Base: total respondents (n=2,000)
12
Other Household Vehicle Profile…
Among the 50% of respondents who had more than one vehicle in their household, the mix of other vehicles owned generally reflects
the same types of vehicles as the main vehicle driven (small-medium cars and medium SUVs). Unleaded is the most common fuel type
of these other vehicles.
However, the presence of a utility as a ‘second or third’ vehicle is more prominent (16%), as is the presence of a diesel fuel vehicle
(20%).

Beside the one you mainly drive, what other vehicle What fuel type do these other vehicles in your
types are currently in your household? household currently use?

25% 77%
23%

17%
16%
11% 11%
10%
6% 20%
5%
4%
2% 2%
1% 1% 1%
Small Medium Large Light Small Medium Large People Sports Utility Van Ot her
SUV SUV SUV Car Car Car Car Mover Car
Unleaded Diesel LPG Hybrid EV

Q17. & Q18. Base: total respondents (n=2,000)
13
Provocations | Current Vehicles…

OTHER VEHICLES IN THE
CURRENT MAIN HOUSEHOLD ARE ALSO
VEHICLES ARE MOST HALF OF ALL
UNLEADED FUEL CARS LIKELY TO BE
HOUSEHOLDS HAVE
LIKELY TO BE SMALL CARS/SUVS, ALTHOUGH
ARE MOST PROMINENT MORE THAN ONE
CARS + MEDIUM VEHICLE THERE’S ALSO UTILITIES
CARS/SUVS AND DIESEL VEHICLES IN
THIS MIX

These same types of Notionally, EVs It suggests that Households can be
passenger vehicle would be competing many households very diverse in the
currently offer the with drivers replacing may face significant mix of vehicles they
greatest level of their vehicle with total overall own and might need
choice for EV another ULP vehicle ownership costs (let to replace in future –
– it’s what people are alone future how feasible is it for
variants, yet current
used to. replacement costs) all households to be
uptake is very low. for vehicles. ‘full EV’ given this?

14
Replacing Vehicles In Future

Reviewing plans for replacing their household vehicle/s, and to what extent EVs might play a role in this…
Replacing Current Vehicle/s…

When do you plan on replacing the vehicle you When replacing the vehicle/s in your household,
mainly drive? is your intention to buy…?

Within the next 12 Brand New Used
16%
months
VEHICLE MAINLY
2-3 years’ time 37% DRIVEN
67% 33%

4-5 years’ time 25% OTHER VEHICLES
IN HOUSEHOLD
52% 48%
In greater than 5
22%
years’ time

Just under one in five (16%) say that they’re likely to replace the main vehicle they drive in the coming year, with 37% intending on
replacing their vehicle in 2-3 years’ time.
This does vary by the age of the driver’s current main vehicle. Those with vehicles more than 5 years old are more likely to update their
vehicle in the next 1-3 years (54%) than those whose vehicles are less than 3 years old (47%)
Most commonly, main vehicles are likely to be replaced with a brand new (rather than used) vehicle (67% new / 33% used), with this
declining to 52% new / 48% used when it comes to non-main/other vehicles in the household…

Q14. & Q19 Base: total respondents (n=2,000)
16
Type Of Vehicle Intended Next…

When viewing the vehicle type that drivers are most likely to purchase next (either to replace their main vehicle or another vehicle in the
household), it’s clear that similar vehicle types to now are being planned.
There are some areas of shifting needs between current and next vehicle (particularly for the main vehicle driven), which have been
shown in more detail over the page…

What sort of vehicle are you likely to buy when you replace your
main vehicle/other vehicles in your household now?

32%

25% 23%
17% 15% 16%
12% 11% 13% 11% 12%
10%
6% 5% 5%
3% 3% 2% 4%
1% 2% 1% 2% 2%

Small SUV Medium Large SUV Light Car Small Car Medium Large Car People Sports Car Utility Van Other
SUV Car Mover

Replacing the vehicle you Replacing other vehicles
mainly drive in household

Q15. & Q17 Base: total respondents (n=2,000)
17
Main Vehicle | Current vs. Future…

We can view the intended future vehicle types for our drivers’ main vehicles and compare to what they’re driving now, to identify
any potential emerging trends in vehicle type needs.
Compared to what’s driven now, there’s a likely stronger appetite for medium-sized SUVs (32% intended vs. 23% driven now) and
large SUVs (13% vs. 8%), and a corresponding decline in intention to buy a small car (15% vs. 25%).

What sort of vehicle are you likely to buy when you
replace the vehicle/s in your household now?

32%
25%
23%
17%
15%
12% 13% 12%
10%
8%
4% 3% 5%
3% 4% 5%
2% 2%
1% 1% 0.40% 1% 0% 2%

Small SUV Medium Large SUV Light Car Small Car Medium Large Car People Sports Car Utility Van Other
SUV Car Mover

Currently driven main vehicle Intend on driving in future

Q15. & Q17 Base: total respondents (n=2,000) denotes vehicle types which are significantly more/less likely to be driven
in future compared to driven now, at the 95% statistical confidence level
18
Overall Willingness To Buy An EV Next…

What fuel type/s would you consider for the next
Most often, our respondents are open to an unleaded fuel
vehicle you buy…?
vehicle when it comes to replacing their next main or ‘other’
household vehicles. Given the most currently-driven fuel type
now is ULP, this insight is unsurprising – people plan to stick
86%
with what they know/currently use.

Around two in five are open to hybrid vehicles for their next 61%

main vehicle (41%), while just on one in five (21%) are open 48%
41%
to considering an electric vehicle. 32%
27%
21% 21%
It does suggest some substantial scope for growth in EVs
(especially in context of just 1% of our sample currently
claiming to have an EV in their household right now). At the
Unleaded Diesel Hybrid EV
same time, it implies that a significant portion of consumers
envisage relying on conventional fuels into the future.
Vehicle you mainly drive Other vehicles

Q16. & Q20 Base: total respondents (n=2,000)
19
Willingness To Buy EV | By Vehicle Type Intended

Willingness to consider an EV is consistently higher for the non-main vehicle driven, regardless of what type this vehicle is likely to be in
future.
Most commonly, intention to consider EV is higher when replacing a vehicle with a light car, light SUV or small car, and tends
to be less prevalent when it comes to large SUVs, large cars, sports cars, utes and vans…

% willing to buy an EV |
Comparison based on type of vehicle you next intend on buying…

37%
31% 30%
27% 29%
25% 24% 24% 23%
22% 23% 23% 22%
20% 21%
19% 19% 18%
17%
15%
12% 11% 13%

0%

Small SUV Medium Large SUV Light Car Small Car Medium Large Car People Sports Car Utility Van Other
SUV Car Mover

Replacing the vehicle you Replacing other vehicles
mainly drive in household

Q16. & Q20 Base: total respondents (n=2,000)
20
Willingness To Buy EV | By Intention For New vs. Used

Willingness to consider an Electric Vehicle also varies based on whether the driver’s next vehicle is intended to be brand new vs. used.
In short, those who are likely to replace either their main vehicle or another household vehicle with a brand new vehicle
are more likely to be considering an EV…

% willing to buy an EV |
Comparison based on intention to buy new vs. used next time…

32%

24% 24%

15%

Vehicle you mainly drive Other vehicles

Intend to buy a Intend to buy a
brand new vehicle next used vehicle next

Q16. & Q20 Base: total respondents (n=2,000)
21
Willingness To Buy EV | By Age Of Current Vehicle

There are few meaningful differences in willingness to purchase an Electric Vehicle when replacing a main vehicle driven based on the
age of their current vehicle. Those with a vehicle aged less than 12 months old are slightly less likely to be considering an EV upon
their next main vehicle purchase…

% willing to buy an EV |
Comparison based on age of current vehicle…

24%
21% 21%
19% 20%

Under 1 year 1-3 years 3-5 years 5-10 years Greater th an 10
years

Q16. & Q20 Base: total respondents (n=2,000)
22
Willingness To Buy EV | By Timeline For Replacement
There is a slight increased likelihood to consider an Electric Vehicle for the drivers’ next main vehicle when the timeframe for
replacement is longer.
Those intending to replace their main vehicle in 4-5 years’ time (25%) are more likely to consider an EV compared to those looking to
replace within the coming 12 months (18%). It implies that some consumers consider EVs as something ‘for the mid-term’
rather than ‘for now’.

% willing to buy an EV |
Comparison based on timeframe for replacing your main vehicle…

25%
22%
18% 18%

Within next 12 2-3 years' time 4-5 years' time Greater th an 5 years'
months time

Q16. & Q20 Base: total respondents (n=2,000)
23
Provocations | Replacing Vehicles…

INCREASED CONSIDERATION OF EVS
IN MOST CASES, THE THOSE CONSIDERING
CONSIDERATION OF AROUND ONE IN FIVE IS STRONGER AMONG
NEXT VEHICLE DRIVERS SMALLER VEHICLES
MEDIUM AND LARGE THOSE LOOKING TO
ARE CONSIDERING AN EV NEXT ARE MORE OPEN
ARE PLANNING ON REPLACE IN 3-5 YEARS
SUVs, DECLINE IN FOR THEIR NEXT MAIN TO EVS THAN THOSE
BUYING WILL BE BRAND CONSIDERATION OF VEHICLE TIME COMPARED TO
CONSIDERING LARGER
NEW RATHER THAN USED SMALL CARS THOSE LOOKING TO
VEHICLES
REPLACE SOONER

As new EV models Our data indicates a In the mix of fuel What does this say Does this suggest
come online, our trend towards people types considered in about the perceived the consumer view is
data suggests that looking for larger future, ULP still lack of connection that EVs are still a
people may come vehicles than they’re dominates between EVs and mid to longer-term
across them in their driving now. Is this consideration overall. larger vehicle types? proposition rather
trend ‘real’, and if so, When or how might Is shifting this than for ‘right now’?
search for a brand
what impact might this balance of perception a case of
new car… his have on consideration shift? consumer education
consideration of or advancing EV
EVs? technology?

24
Focus On EVs

Specific feedback on drivers/barriers to EVs and the status quo of beliefs around
EVs…
Consideration Of Hybrid & Electric

Specifically, how likely are you to consider How likely are you to consider buying
an EV for the next vehicle you mainly drive? a hybrid vehicle in future?

Very likely 13% Very likely 13%

Quite likely 25% Quite likely 35%

Neutral 31% Neutral 30%

Not very likely 16% Not very likely 10%

Not at all likely 15% Not at all likely 12%

When asked directly about their consideration of an EV for the next vehicle they’ll mainly drive, 38% say they’re very or quite likely to
consider it. This is higher than the proportion who are unlikely to do so (31%). At the same time, consideration of a hybrid vehicle is at
48%.
In both cases, around one in three remain uncertain and may require more information/reassurance. Regardless, it does indicate a
level of openness to EVs among the broader market.

Q21. & Q24. Base: total respondents (n=2,000)
26
Profiling | Consideration Of Electric Vehicles
% ARE VERY/QUITE LIKELY TO CONSIDER AN EV IN FUTURE

CURRENT MAIN VEHICLE DRIVER GENDER
There are some significant demographic
skews when it comes to considering
electric vehicles.
38% 42% 37% 34% 43% Men are significantly more likely than
26% 38% 34%
women (43% vs. 34%) to be open to EVs,
while they are less appealing to those who
0%
Total SUV Car Sports Ute/ are current main drivers of a sports car
car Van Total Men Women Other (26%)
There’s also a skew based on age –
DRIVER AGE HOUSEHOLD INCOME younger drivers are much more likely to
be open to buying an electric vehicle.
Finally, household income has a significant
45% 49%
48% 47% 38% bearing on openness to EVs. Above
38% 28% average income households (49%) are
33%
22% far more likely to consider an EV than
those in below average income households
Total Below Average Above (28%).
Total <35 35-50 50-64 65+ average average

Q21. Base: respondents who are very/quite likely to consider denotes results which are significantly higher/lower than
27 an electric vehicle in future (n=775) comparative sub-groups at the 95% confidence level
Profiling | Consideration Of Electric Vehicles
% ARE VERY/QUITE LIKELY TO CONSIDER AN EV IN FUTURE

STATE/TERRITORY

63%
45% 47% 50%
38% 40% 34% 37% 36% 38%
32% 31% 28%
20%
Drivers in Perth, Sydney, the ACT and NT
are much more open to considering an EV
Total Sydn ey Oth er
NSW
Mel bourne Oth er
VIC
Brisban e Oth er
QLD
Perth Oth er
WA
Ade lai de Oth er
SA
TAS ACT NT
for their next main vehicle.
Even more significantly, consideration of
EVs is stronger among drivers who live
HOUSEHOLD LOCATION within 10km of a metropolitan CBD
(49%), particularly when compared to
those living in rural areas (26%).
49%
38% 38% 35%
26%

Total Inner Outer Regional Rural
metro metro

Q21. Base: respondents who are very/quite likely to consider denotes results which are significantly higher/lower than
28 an electric vehicle in future (n=775) comparative sub-groups at the 95% confidence level
Drivers Of Considering An EV…

Why is it that you’re likely to consider buying an electric
vehicle in future?

Better for the environment 63%
The most common reason for being open to considering an
electric vehicle is a view that they’re fundamentally better for EVs are the future 60%
the environment (63%) and represent an inevitable step into Cheaper to run and maintain 45%
the future (60%).
Leverage govt EV incentives 29%
Just under half (45%) note that EVs are cheaper to run and More advanced technolo gy 28%
maintain.
Sufficient support infrastructure 26%
This frames the dynamic of EV consideration in the future – EVs are good value for money 23%
those open to EVs feel they’re better for the environment and
Suited to my vehicle type/driving 18%
have the benefit of being cheaper to maintain/run. However,
these benefits would be weighed up against cost-side factors I like the design 15%
(like functional capacity and actual purchase cost)… EVs are safer 12%
Another reason 1%
No reason 1%

Q23. Base: those who are likely to buy an EV in future (n=775)
29
Barriers To Considering An EV…

Why is it that you’re unlikely to consider buying an
The most common reason for being unlikely to consider an electric vehicle in future?
electric vehicle is a concern around them costing too much
(62%).
Cost too much 62%
Other barriers are related a perceived lack of functionality for Lack of charging stations/
55%
EVs – 55% are concerned about a lack of charging infrastructure
infrastructure and 41% about a lack of driving Low range/driving distance before
41%
having to recharge
range/distance.
Recharge times are too long 31%
Interestingly, just one in four (23%) discount considering EVs
based on a perception of not meeting their functional vehicle Unsuitable fo r my functional needs 23%
needs (e.g. ability to tow, function as a commercial vehicle
etc.). Unnecessary to change to electric 19%

As hypothesised one page earlier, the benefits EVs are Dislike the design of these vehicles 9%
weighed up against the financial cost primarily. In addition,
Another reason 5%
there’s work to be done to educate and/or improve ease of
charging/vehicle range to help drive even greater No reason in particular 4%
consideration.

Q22. Base: those who are unlikely to buy/unsure about buying an EV in future (n=1,225)
30
EV Price Point…
We set up a hypothetical situation where the respondent is in the market for a petrol vehicle priced at $40k, and we asked them how
much they’d be prepared to pay for an EV variant of the same vehicle. 4.5% said they’d pay ‘nothing’ – for the purposes of our
analysis we have removed this cohort (who would be hard to convert to an EV irrespective of price).
Overall, 49% are willing to pay more for an EV than a petrol variant – 17% would be willing to pay $5k more and 15% would pay $10k
more. On balance, the overall average price drivers are willing to pay is $42,400 (which represents a 6% price premium).

Imagine you were in the market for a petrol vehicle that is available for $40,000. What
price would you be prepared to pay for an electric version of this same vehicle?
Ave. price $42,400
27%
% would
pay more 49%
17% than $40k
15%

% would
7% pay $40k 27%
5% 5% 4%
2% 3% 2%
1%1%
0% 0%0%0%0% 0%0%0%0% 0%0%0%0%0% 0%0%0%0%0%0%0% 0%1% 0%1%1%0% 0%0%0%1%0% 0%0%0%0% 0% 0%0%0%0%1%0%0%0%1%0% % would
pay less 25%

10 000 0
10 000
15 000
18 000
20 000
20 500
22 000
23 000
23 080
25 000
26 000
28 000
28 900
29 500
30 000
31 000
32 000
33 000
34 000
34 500
35 000
36 000
36 800
37 000
37 500
38 000
38 500
39 000
40 000
40 880
41 000
42 000
42 500
43 000
44 000
44 444
45 000
46 000
47 000
47 500
48 000
49 000
50 000
51 000
52 000
52 500
54 000
55 000
56 000
60 000
62 000
65 000
67 000
68 000
70 000
75 000
78 000
79 000
80 000
than $40k

Q25. Base: total respondents (n=2,000)
31
Attitudes To EVs

How strongly do you agree or disagree with the following statements?

Governments should be incentivising Australian drivers are strong in their support for the
12% 18% 31% 40% idea of Government incentivisation for customers
customers more to transition to EVs
transitioning to EVs (71% agree with this notion).
I’m concerned that I won’t be able to
afford a vehicle if Governments ban the 15% 25% 33% 28%
Three in five (61%) are concerned about being
sale of conventional fuel vehicles unable to afford a vehicle if governments ban
the sale of conventional fuel vehicles, while a
Given the current economic times, I’m
similar proportion (60%) agree that the current
less willing to pay more for an EV over 15% 25% 33% 27%
other fuel types economic times make them less willing to pay
more for an EV.
EVs don’t have enough driving range for Overall, the mindset of consumers is focused on the
19% 26% 33% 23%
me to consider buying one
personal financial impacts of considering an EV (and
of government policy). This indicates just how much
The rising cost of petrol/diesel makes decisions about EVs would be impacted by what
19% 26% 35% 20%
EVs more attractive to me
households feel they can afford.

Disagree Neutral Somewhat Agree Strongly Agree

Q26. Base: total respondents (n=2,000)
32
Provocations | EV Focus…

DRIVER OF EVs? THE EVS DO COMMAND SOME CONSUMER MINDSET IS
38% SAY THEY’RE
EV CONSIDERATION IS ENVIRONMENT. LEVEL OF PRICE FIXATED ON THE
LIKELY TO CONSIDER AN
HIGHER AMONG SOME BARRIER TO EVs? THE PREMIUM OVER A PERSONAL FINANCIAL
EV FOR THEIR NEXT
COHORTS THAN OTHERS COST AND LACK OF COMPARABLE PETROL IMPACTS OF BUYING AN
MAIN VEHICLE
FUNCTION… VARIANT EV

When pressed Consideration is It would appear that On average, 49% are They’re keen for
specifically about higher among higher consideration of EVs willing to pay govt. incentives to
considering and EV, income households, becomes a balance something more for alleviate the cost
there is greater younger drivers and between what’s best an EV over a petrol burden of transition,
openness to the those living within for the environment/ variant of the same and hold concerns
10km of a major the future, and what I vehicle. overall about the
idea.
CBD. It suggests can afford and fits The average price lack of affordability.
At the same time, that it’s still with my functional premium willing to Overall, EV cost is
31% are unlikely to somewhat niche. driving needs. be paid is around definitely an inhibitor
consider one. 6% on a purchase for some drivers right
price of $40k. now.

33
Appendix: Sample Profile

Demographic profile of sample
Demographic Profile Of Sample

AGE n= % LIFE STAGE n= %

17-29 411 21% Single 519 26%

30-39 360 18% Couples, no kids 282 14%

40-49 347 17% Young Families 188 9%

50-59 323 16% Middle Families 289 15%

60+ 559 28% Mature Families 333 17%

Empty Nesters 389 20%
GENDER n= %

Male 1,021 51% HOUSEHOLD LOCATION n= %

Female 978 49% Within 10km of CBD 521 26%

Other 1 0.2% Metro >10km from CBD 820 41%

Regional 351 18%

Rural 308 15%

35
Demographic Profile Of Sample
HOUSEHOLD LOCATION n= % HOUSEHOLD INCOME n= %

Sydney 419 21% Less than $20 000 52 3%

Other NSW 225 11% $20 000 - $39 999 237 12%

Melbourne 374 19% $40 000 - $59 999 242 12%

Other VIC 119 6% $60 000 - $79 999 246 12%

Brisbane 198 10% $80 000 - $99 999 205 10%

Other QLD 203 10% $100 000 - $124,999 267 13%

Perth 162 8% $125,000 - $149,999 199 10%

Other WA 40 2% $150,000 - $199,999 233 12%

Adelaide 124 6% $200,000+ 177 9%

Other SA 40 2% Don’t know 31 2%

TAS 40 2% Prefer not to say 111 6%

ACT 40 2%

NT 16 0.8%

36
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