Warning over major issue 'hampering' EV sales in Australia
EV sales are on the rise across the country, but there are still issues in the rollout that must be ironed out, one expert has warned.
The damaging mentality that "you need to frequently replace your EV", like a mobile phone once every two to three years, is "hampering electric vehicle adoption" in Australia, a leading car expert has warned.
Des Hang, CEO at Carbar, said regardless of whether the mindset is "true or not", the notion will play a big role in driving prices down in the secondhand EV market, therefore impacting the appeal of EVs to current petrol drivers.
In Australia, electric vehicle sales are on the rise — and in fact, we're on track to shatter EV sale records across the country with new data recently emerging showing "unprecedented" demand — but there are some drivers who are yet to be convinced.
Speaking to Yahoo News Australia, Hang said the mentality around EVs "has shifted in the past 12 months", where once they were seen as cars that defied market trends — "remarkably holding their value". But now, they’re viewed more "akin to technology products like phone or laptops".
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"One of the challenges we’re seeing with EVs, as a player in the auto industry, is understanding whether they will actually hold their value," Hang told Yahoo. "We’re starting to see this idea of obsolescence — well known within tech circles with phones and computers — permeate into the EV arena. Nobody wants to buy a car with the idea that they will need to replace it within years."
Hang said "there’s currently just not enough evidence" to say any EV under "everyday conditions" will be as reliable as a ICE vehicle over the same period. "Not yet, at least," he warned.
"In this regard, the fact that EVs are being pioneered by tech companies such as Tesla — known for feeling this obsolesce trend — as opposed to traditional automakers may be working against the broader EV movement.
"This, in conjunction with a lack of services for EVs [chargers, servicing] and an impending influx of Chinese manufactured EVs has many savvy Australian consumers in a holding pattern on broader EV adoption. If they need a car now, they are hedging their bets and picking up a hybrid instead."
Hang said the mindset — despite whether it's wholly accurate — that you need to replace your EV every so often, like a phone every few years, is preventing drivers from going electric. "It's hampering broader adoption and will ultimately drive prices in the second-hand EV market down," he said.
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Hang's sentiment is certainly one that EV critics share, with a study released this month finding 66 per cent of respondents were concerned about the vehicles' longevity, in particular when it comes to their batteries. Conducted by Carsales, the research — which analyses what's holding ICE car drivers back from making the EV switch — suggested the main reason is cost.
A total of 59 per cent said EVs are too pricey. Battery degradation was a "major concern" for 66 per cent of respondents, with 72 per cent citing it as the biggest cost uncertainty.
Lack of charging infrastructure, limited range and long charging times were also other issues flagged by Australians in the survey. When it comes to the latter three points, an enthusiastic Aussie couple say they recently debunked many of those "myths" while on a round trip in the outback in their Tesla.
Meanwhile, Australia is on track to hit an annual milestone of 100,000 EV sales this year, with 30,000 battery electric (BEV) and plug-in hybrid vehicle (PHEV) sales recorded in the second quarter of 2024 alone — the first time Australia has cracked that figure in a single quarter, According to the nation's Electric Vehicle Council.
Electric Vehicle Council chief executive office Samantha Johnson says "these sales figures are without precedent". "Australia has never had so many electric vehicles on the roads," she said. "It was a record-breaking quarter for combined battery and plug-in electric vehicle sales."
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