Sales of electric cars boom in 2023
In just a few short years Australians have gone from completely ignoring these cars to lining up in droves to get one.
The results are in for the first six months of new car sales this year.
Buyers snapped up about 125,000 new cars in the past month as ute shoppers took advantage of the Federal Government instant asset write-off scheme before it was wound back on July 1.
Improvements in new-car supply resulted in a 25 per cent surge in sales last month, but not all brands enjoyed success..
Here are the winners and losers through the first six months of the year.
WINNERS
Tesla/electric cars
Sales of electric cars now account for 7.4 per cent of the market. Only a few short years ago they made up less than 0.1 per cent. This year alone sales of battery powered cars have increased by 345 per cent.
Tesla is making the most of its strong supply and booming interest in zero-emissions vehicles.
The Model Y SUV and Model 3 sedan are the third and ninth best selling vehicles in the nation through the first half of the year.
It’s not just Tesla having a great year, though.
Chinese electric car brand BYD has sold more than 6000 of its Atto 3 small hatchbacks and Polestar and Mercedes-Benz have sold more than 1000 EVs, too.
Things are only set to get better for EV buyers as a wave of sub-$40,000 machines arrive in the coming months from BYD, GWM and MG.
Ford and VW
2022 was tough for Ford and Volkswagen but they’ve bounced back strongly this year.
The Ford Ranger ute is the second best selling vehicle in the nation and is challenging the Toyota HiLux for the top spot.
Sales for the Blue Oval are up 33 per cent this year.
Volkswagen’s sales have bounced more than 60 per cent this year as the company’s supply of new cars continues to improve.
The recent arrival of the new Amarok ute, which was co-developed with the Ford Ranger, is likely to further boost the brand’s performance in the second half of this year.
Chinese cars
Chinese car brands are going gangbusters, as buyers looking for value in tougher economic times.
MG is the standout performer, notching up more than 26,600 sales this year. It’s ZS small SUV is the best selling vehicle in its class and is the fourth most popular car in the country.
BYD is a popular electric car brand, while GWM (Great Wall Motors) and its SUV brand Haval continue to grow sales very strongly.
LDV, which sells mostly commercial vehicles, has increased sales by more than 50 per cent.
China is now comfortably the third biggest supplier of cars to Australia behind Japan and Thailand.
In June it almost overtook Thailand – where most dual-cab utes are made – as the second biggest source of cars.
Car makers such as Tesla, Polestar, Volvo and others build cars in China for the Australian market.
LOSERS
Hybrids and Toyota
Australians have bought more fully electric cars than petrol-electric hybrids in 2023.
At this point in 2022 car makers sold four times as many hybrids as electric cars, showing a huge reversal in buyer tastes this year.
A big part of the reason hybrids aren’t selling as well are Toyota’s big supply issues.
The Japanese giant accounts for the majority of hybrid sales in Australia but a crippling semiconductor shortage has hampered its ability to meet demand.
Toyota is delivering every car it can get its hands on but waitlists for popular hybrids such as the RAV4 and Corolla Cross SUVs stretch out to next year. As a result, sales of many models have dropped significantly.
RAV4 sales have slumped slide by a third compared with the same period last year, while Corolla hatchback sales are almost half of 2022.
Toyota’s luxury arm, Lexus, has had a stellar 2023 delivering 75 per cent more cars than last year.
Mitsubishi
The Japanese brand has had a tough 2023 so far.
Sales of its Triton ute have been cut in half compared to the first half of 2022.
A strong performance by the new Outlander seven-seat SUV has been offset by a decline in formerly popular models such as the ASX small SUV and Pajero Sport four-wheel drive.
There is help on the way, though.
Mitsubishi is set to debut its new Triton and ASX soon and both models are likely to arrive Down Under in the next 12 months.
Agency models
The agency sales model, whereby head office owns all its stock and sets a non-negotiable price, seems to have flopped in Australia.
The model was supposed to cut the dealer out of the sales process, removing the haggling and hassle of buying a new car. Dealers are left to simply deliver and service the vehicles.
Honda and Mercedes-Benz are two brands that have adopted the new model and sales for both car brands are down for the year.
Honda, which has streamlined its range, has experienced a dip of 11 per cent this year.
Mercedes-Benz has reported a similar decline, selling about 1800 fewer cars than the same period last year.
In contrast, Tesla’s agency model appears to being working brilliantly.
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