Impact Of Electric Cars On Automotive Industry In Australia

Impact Of Electric Cars On Automotive Industry In Australia

The sale of electric vehicles (EVs) is on the rise. The figures are expected to double in the future as more and more car owners are looking to shift to greener alternatives to diesel and petrol cars.

Sales in Australia drastically increased by 780% in the first two months of 2023 compared to the same period in 2022, accounting for 3.8% of all new vehicle purchases in 2022.

Australia’s national electric car policy and new vehicle pollution rules will undoubtedly have far-reaching consequences. This blog is your guide about the impact of electric vehicles on the automotive industry in the coming years and why electric vehicles are the future.

What Is The Future Of The Auto Industry for Electric Cars

The green revolution in the automotive industry is not coming; it’s already here.

There will be much more work for those living in countries with experience building cars, like Australia. The Carmichael Centre at the Australia Institute called it a “once in a lifetime opportunity” to revive Australia’s auto sector in an “environmentally and socially transformative way”.

There are still over 34,000 people working in the industry in Australia, producing components for businesses worldwide. Some auto plants, the last of which shut down in 2017, are still standing.

If the sector shifts its attention to exporting, especially high-value electric car parts, it may solve the problem of the fragmented market.

Why Shift To Electric Cars

The current market size for Australian electric vehicles in 2023 is about USD 6.38 billion. Here’s why more people want to upgrade to electric cars, thus increasing the demand in the market.

Zero Emissions

Battery Electric Vehicles, also known as fully electric vehicles, do not release any toxic pollutants into the air, meaning they produce zero emissions.

EVs are game changer alternatives to internal combustion engines. Soon non-greener options will be a thing of the past.

Better For Businesses

Businesses are also considering shifting to EVs. The reason for the curve is minimum emissions meaning showing green credentials to their customers, lower costs as these cars don’t need diesel or petrol to run, and the government’s financial incentives.

Easy to Drive

Instant torque in electric cars provides swift acceleration, which makes driving them a fun experience. Because of scores of options in the market, car owners can easily make a switch.

Cheaper Maintenance

Maintaining EVs is cheaper than conventional vehicles. Fewer moving parts in electric vehicles make them less vulnerable to faults and wear.

Servicing electric cars is also much easier. For instance, these vehicles don’t need you to change the oil.

Excellent Performance

When EVs were first launched, they faced criticism about their power and speed. But since then, a lot has improved. Now their performance is even better than diesel or petrol cars.

Tax Incentives

Every Australian territory and state provide rebates and incentives for electric vehicles. Car owners can now enjoy removed fringe benefits tax (FBT) on eligible electric cars.

Our Key Takeaways So Far About Electric Car’s Future

  • Electric Vehicles Stand a Chance In Australia

An electric vehicle (EV) policy and “options for introducing fuel efficiency standards” will be introduced soon, as revealed by Chris Bowen, the climate and energy minister.

In future, Australians will have access to the world’s greatest transport technology after a decade of “denial and delay,” an age of “demonization” of technologies like zero-emissions automobiles, and years of frustration.

  • High EV Demand in Australia In Coming Years

Around fifty percent of consumers in dealerships around the country are now inquiring about EVs, indicating that consumer demand is already high.

In five or ten years, no one will want to buy an internal combustion car. It’s just that the process of mainstreaming EVs even further has to be something that brings along the people in Australia. That means widespread adoption is essential.

  • The Speed Could Be More Pleasing to Everyone

The manufacturing speed and more options for electric vehicles from all brands can further accelerate the process. That means giving more incentives and tax breaks for their manufacturing.

Most of the information the federal government needs is already available thanks to proactive state governments. In addition, a late adopter like Australia can benefit from the expertise of other nations.

Conclusion

The Australian car sector needs better investments and ideas. For Australia to capitalize on the exciting opportunity of a greener future, a systematic industrial policy for EV manufacturing is the need of the hour.

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