Big wait for electric vehicles as fuel spike, incentives drive demand

There has been a huge spike in searches for hybrid vehicles in the past week following a shortage of electric vehicles in Queensland as fuel spikes and a new incentive scheme drive demand.

Online searches for hybrid vehicles spiked 23.2 per cent in the past week following an ongoing shortage of electric vehicles in Queensland.

The waitlist for EVs could blow out to months or even years as record fuel prices continue to drive demand amid thousands of write-offs during the recent floods and a new state government incentive scheme.

Carsales editor-in-chief Mike Sinclair said that all new cars were in short supply but EVs have been “especially affected” with the Australian market under-serviced.

“It’s the perfect storm with supply at the moment for the new and used car markets – delays with suppliers and manufacturers having to limit production due to Covid measures, shipping challenges, but also the fact over 20,000 cars (were) affected during recent floods in Queensland and Northern NSW,” he said.

“Some EV models are available – including some Tesla models and perhaps other EVs with older technology – but for the most part there is a waitlist with people ordering EVs months if not years in ­advance.”

But Mr Sinclair said there was undoubtedly a growing second-hand market for EVs, although vehicle volumes are “still small”.

“As petrol reaches record highs so does EV search volumes,” he said.

This record demand follows the Palaszczuk government’s announcement of a $3000 subsidy for anyone who purchases an EV to the value of $58,000 from July 1.

This subsidy will apply to just six models currently available in Queensland but Federal Chamber of Automotive Industries chief executive Tony Weber said it will support “potential EV buyers.” 

Premier Annastacia Palaszczuk said the new Queensland Zero Emission Vehicle Strategy 2022-2032 would help drive the state’s commitment of net-zero by 2050.

But Mr Webber said that the sales target of 50 per cent of new passenger vehicles sales to be zero emission by 2030, and 100 per cent by 2036, was “very ambitious”.

“The primary policy objective is to reduce CO2 emissions and our pathway to this objective in the transport sector needs to be a holistic one. Electric vehicles alone will not achieve this,” he said.

Hyundai Dealer Principal Nathan Seery said that there was “definitely more interest in EVs after the announcement (of the subsidy), with website traffic increasing.”

“At the moment, demand has not yet met supply, but moving forward demand is going to be heavier,” he said. 

Mr Seery said wait times varied depending on the life cycle of the car but “there’s definitely no stockpile”.

“The same time constraints that apply to other vehicles will apply to EVs,” he said.

But Mr Seery added that “buyer demand is not in a small hatchback runaround, they’re more interested in functional family cars”.

Electric Vehicle Council CEO Beyhad Jafari said “more electric vehicle models were coming online in the next 12 to 24 months and between the 40k to 60k price points.”

Mr Jafari said the Queensland government was undoubtedly trying to “target” those segments and to “move the needle”. 

“It’s important for consumers to think about this huge volatility when it comes to petrol – electricity prices are quite stable and only move by a cent, not 50c or $1,” he said.