Misconceptions and premature cancellation of rebates have put a damper on electric car sales, an industry group has warned, as figures show adoption has slowed.
But sales of hybrid and plug-in hybrid cars have continued to accelerate over the past six months despite difficult economic conditions, according to analysis by the Australian Automobile Association.
The peak automaker released a quarterly EV Index update online Monday showing new vehicle sales fell 7.6 percent in the third quarter of the year, with nearly 15,000 vehicles sold.
Sales of internal combustion engine vehicles fell more than average, falling by 9.1 percent over the three-month period, but electric cars fell by 25 percent.
Battery-powered cars accounted for 6.5 percent of all new cars sold, down from 8.1 percent last quarter, their lowest market share since 2022.
The results came after rebates on electric vehicle sales were scrapped in every state and territory except Western Australia, and Aman Gaur, head of legal, policy and advocacy at the Electric Vehicle Council, said these decisions changed consumers’ purchasing intentions.
“The early withdrawal of EV incentives in many states, coupled with ongoing concerns about EVs, is stifling rapid uptake,” he said.
“Governments must continue to implement targeted programs that make it easier and more affordable for Australian households and businesses to switch to electric vehicles.
“At the same time, the industry must continue to address misconceptions about EVs to attract the next wave of adopters.”
States including Victoria, New South Wales, Queensland and South Australia have offered rebates of up to $6,000 on the purchase price of new electric vehicles to boost adoption, but many schemes have ended earlier than promised.
Prices for some electric cars have already fallen, but Gore said more affordable models would arrive in 2025 alongside Australia’s new vehicle emissions rules.
“Affordable electric vehicles are entering the Australian market – a trend that is expected to accelerate with the new Vehicle Efficiency Standard coming into force in 2025,” he said.
Although electric vehicle sales have declined, low-emission hybrids and plug-in hybrids have risen in Australia.
Hybrid vehicle sales rose 3.3 percent to more than 48,000 sales during the quarter, or a share of more than 16 percent, while hybrid vehicle sales jumped 56.6 percent from a lower base.
The association’s report indicated that “sales figures (since 2023) confirm a clear trend of growth for hybrid cars, while the market share (for battery-powered electric vehicles) appears to have reached its peak at the present time.”
Some hybrid vehicles are eligible for additional tax breaks from the federal government, although these incentives are set to expire in April 2025.
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