Government needs to incentivise EV take-up

The NRMA and the Electric Vehicle Council today called on the Federal Government to offer households financial incentives to purchase electric vehicles and prioritise the roll-out of charging infrastructure so that Australian motorists can benefit from lower transport costs.

The call coincides with the NRMA’s launch of one of Australia’s largest electric vehicle fast charger network. The first stage will connect Sydney to Newcastle and beyond by providing a charging station at Wallsend, unlocking the Hunter for electric vehicle owners.

The NRMA will launch a network of more than 40 charging stations across NSW and the ACT to ensure electric vehicle owners can travel around the state and unlock regional tourism for electric vehicle owners.

Sixty-five per cent of NRMA Members said access to charging infrastructure was stopping them from buying an EV; while 59 per cent said range anxiety, or anxiety over running out of power while travelling, halted their purchase decision. Current high upfront costs round out the top three concerns.

Electric vehicles were forgotten in this year’s Australian and State Government budgets said the NRMA and Electric Vehicle Council. To ensure Australia is not left behind, we have today launched a new policy proposal on electric vehicles, Recharging the Economy: Accelerating Electric Vehicle Adoption, laying out a roadmap for electric vehicle policy a year ahead of the next Federal Election.

With upfront costs decreasing and expected to be on par with internal combustion engines by 2024/25, investment in charging infrastructure short-term is urgently needed as well as transitionary incentives to reduce upfront purchase costs.

A central recommendation of the policy is the introduction of a $1000 rebate and the extension of existing low-interest loans to consumers to produce low-cost renewable electricity to allow them to charge their electric vehicle at home. The policy identifies that two-car households could benefit from cost of living reductions of up to $5,500 per year.

NRMA Group CEO Rohan Lund said without accelerated adoption of electric vehicles, Australia risks continued vulnerability to the global oil market, higher costs of transport, reduced access to vehicle models and higher emissions.

“As a nation, we have fallen behind our competitors, the US, Europe, Canada, Japan and China. These countries have already achieved electric vehicle adoption of close to two per cent of new car sales, while in Australia it is less than one per cent.”

“Governments in particular can play a practical role by lifting the number of electric vehicles in their fleets. In 2017, the Australian Government only purchased one electric vehicle, down from 11 the year before. Many state governments have introduced clean vehicle policies, however NSW lags behind with only seven electric vehicles in its fleet.

“The introduction of electric vehicles is a once in a generation step change for the transport industry and electricity sector. The scale of the change means there is a clear and essential role for governments in ensuring that Australians have access to these cheaper and cleaner vehicles.

Research released by the NRMA, St Baker Energy Innovation Fund and the Electric Vehicle Council earlier this year found that if higher rates of EV adoption could be achieved, electric vehicles could contribute around $3 billion towards Australia’s GDP and create more than 13,000 additional jobs by 2030.

Electric Vehicle Council CEO Behyad Jafari said providing early support for the transition to electric vehicles makes the technology more accessible to more Australians sooner.

“Around the world governments have taken decisive action to provide certainty for private sector investment. As a result, motorists in those countries can choose from lower priced electric vehicles that that save them thousands per year on lower running costs,” Mr Jafari said.

“It’s critical we get this early support right so that as the technology continues to improve, Australians have access to it. Sitting on our hands will mean we’ll get in last and be stuck paying to retrofit infrastructure we built without the proper planning and foresight.

“The world has made it clear that this is the direction we’re heading in. As a smart country, if we get ahead of the pack, we have a real opportunity to be leaders and create new businesses and jobs in the booming electric vehicle sector. Right now, all we’ve got to lose is bad air pollution and a hazardous reliance on imported oil.”