Why does Australia remain in the slow lane when it comes to electric vehicle uptake and infrastructure?
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Media coverage and anecdotal tales from travellers returning from countries like Norway, Germany and even the gas-guzzling USA detail an overseas electric vehicle (EV) nirvana.
And while the increasing cost of fuel and benefits to the environment have some households here ready to buy an electric vehicle (EV), significant roadblocks remain.
Access to charging networks and limited vehicle choice are partly to blame for our lag, yet it's prohibitive costs that remain the number one barrier to Australian drivers swapping from petrol to plug-in.
Soaring cost-of-living and persistent mortgage rate hikes are squeezing household budgets so to the prospect of forking out between $15,000 and $25,000 more than a regular car for the privilege of owning an EV is a stretch.
Here's where our policymakers can act to actively help spark the EV market.
Firstly, measures reducing the upfront cost of EVs, such as waivers on import duties and taxes, directly address the most significant cost barrier. This will also encourage manufacturers to bring more models to market by driving up demand.
Secondly, emission standards are critical. Low-priced EVs are not being offered to Australia as the limited supply has been prioritised to countries with emission standards. Not only does this mean we are not getting a wider range of EVs here, but disappointingly, we have also become a dumping ground for internal combustion-engine-dependant vehicles not wanted elsewhere.
Generally, buyers only factor in early life operational costs when making a purchasing decision. Many people don't have a deep understanding of EV ownership and operation.
Better communication from our leaders and industry demystifying EV's and explaining the infrastructure surrounding their use would increase consumer confidence. This would include information on model choice, cost savings, emission reductions and charging networks to drive uptake.
Fleet managers buy well over half a million cars a year in Australia. By changing the tax incentives and providing the charging infrastructure, we can provide an immediate boost to both the new and second-hand EV markets.
Federal and state governments should only purchase EVs with initiatives that help create the second-hand EV market, making them more accessible for all Australians. Adjusting the taxation and other costs for a limited time to allow large organisations and governments to flip EVs after 20,000km or two years instead of 40,000km or four years would help drive this.
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While purchase price and low model availability are significant barriers, charging infrastructure is also seen as problematic. The charging network must keep pace with the uptake of EVs, have interoperability between makes, and be in working order to ensure community confidence.
The war in Ukraine and COVID pandemic have provided harsh lessons in the importance of sovereign capability in manufacturing and our need for strong supply chains. We import over 90% of our fuel, and the cost is placing an unsustainable burden on household, business, and government budgets. Developing local capability in EV, component, and subsystem manufacturing, such as battery and chargers, is economically smart and provides greater resilience in the face of unexpected challenges. Engineers are crucial to this skilled workforce capability.
For Australia to make the net zero target by 2050 it will require us to phase out sales of new ICE vehicles by 2035 at the latest. In doing so, not only will we reduce our emissions, we will also lessen our reliance on imported fuels, help the environment and reduce vehicle running costs.
But time is running out to meet these deadlines, we must accelerate this transition or risk losing the EV race.
- Romilly Madew is the chief executive officer of Engineers Australia.
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