What will it really take for you to buy an electric car? | Opinion

To modify a line from the 1980s American cinematic classic, Field of Dreams – “if you build appealing electric vehicles (EVs), will people come?”

It’s the question that must be asked now, because we’ve reached the moment many within the car industry have been talking about for the better part of the last decade. There are a range of increasingly diverse electric vehicles and state governments around the country have incentives that were supposed to be one of the final stumbling blocks.

Look at the line-up of EVs that are either currently or soon to be on sale locally – Nissan Leaf, Mazda MX-30, Kia e-Niro, Tesla Model 3, Mercedes-Benz EQC, Hyundai Kona Electric, Hyundai Ioniq 5, Kia EV6, Polestar 2, Volvo C40, Porsche Taycan and the list goes on.

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There are now electric small cars, small SUVs, mid-size sedans, mid-size SUVs, large SUVs and even dedicated performance cars. So, whatever your preference is in a new vehicle, chances are there’s something that will suit.

Of course, the catch is cost, with the cheapest EV, the electric MG ZS, priced from $44,990 drive-away, which is a significant premium over its petrol equivalent. But while EVs are yet to reach price parity with internal combustion-powered models, the introduction of government incentives helps to mitigate the price difference – to various degrees.

Let’s just take a quick recap of what each state is currently offering, to refresh ourselves and get a clear understanding.

New South Wales

The state government is offering a $3000 rebate for the first 25,000 EVs sold under $68,750, and stamp duty exemption for EVs under $78,000. It’s also allowing EVs to use transit lanes and adding recharging infrastructure to the state.

It has said it will introduce a road user charge, but not until 2027 or when EVs make up approximately 30 per cent of the new vehicle fleet.

ACT

Similar to NSW, the territory with the nation’s capital offers no stamp duty and access to transit lanes, plus two years free registration for EVs. It also offers 10-year interest-free loans for EV buyers, but only up to $15,000 of the purchase price.

Victoria

Buyers in this state get a $3000 rebate off their EV but the government also introduced a controversial road user charge at the same time – set at 2.5 cents per kilometre driven and 2c/km for plug-in hybrids. Given the average Victorian motorists mileage, the new tax works out at approximately $300 per year, effectively negating the benefit of the rebate (assuming you own your EV for 10 years).

Queensland

The only incentive is reduced stamp duty for EV buyers.

South Australia

The government has proposed a $3000 rebate for the first 6000 EVs sold, but is also planning a road user charge to be implemented at the same time.

It has committed to installing 110 ultra-fast chargers on highways and 350 fast chargers in metro areas by 2030.

West Australia

There’s a commitment to investing in expanded infrastructure but there’s no plans for purchasing incentives.

Tasmania

EV buyers don’t need to pay stamp duty.

These changes to the market appear to be having an impact already, with sales of electric SUVs up more than 353 per cent year-to-date according to the September new car sales data.

It’s all relative though, because that spike in EVs account for a total of 3568 vehicles from a total of 816,140 – just 0.4 per cent of total sales.

So how do we change it? What are the obstacles that we need to overcome to continue the growth of EV sales?

While it’s good for the government to make these commitments to expanding charging infrastructure, many of us will likely wait until we see more of these in the world. For example, my local shopping centre has more than 3000 parking spaces but only two with EV charging. Until such time as people can freely and easily charge their EV in public, it’s likely to create hesitation for many.

Then there’s the reality of the cost of the cars. The Hyundai Ioniq 5 starts at $71,900 (plus on-road costs) for an SUV that’s similar in size to the Hyundai Tucson, which tops out at $52,000 for the diesel-powered model. That’s a $20,000 premium for the electric powertrain, that’s a price difference few people will be able to afford.

But despite these current obstacles it appears that EVs are gaining momentum and that’s likely to pick up in the coming years as car makers produce more and reduce costs, and governments look to cut emissions in the face of climate change.

What will it take to get you to consider an EV for your next new vehicle purchase?