‘We’re just not getting the uptake’: Electric car sales hit a bump in the road

Australians’ uptake of all-electric cars has tumbled despite more than 100 models now on the market, as worries about the cost of living and a lack of charging points hit sales.

The number of fully electric passenger and sports utility vehicles sold fell 4.5 per cent in the first half of this year compared to the six months to July last year, down from 50,020 in 2024 to 47,749 this year.

Electric vehicle sales are slumping. Credit: AP

However, sales of hybrid vehicles continue to grow, indicating that vehicles that save drivers on fuel costs, while producing fewer emissions, are popular with motorists.

Plug-in hybrid sports utility vehicle sales boomed in the first half of this year to 14,386, up 83 per cent compared to the first six months of 2024. Traditional hybrid SUVs grew 27 per cent in the same time. This year was the first that Australia recorded sales of plug-in hybrid light commercial vehicles, with 10,755 sold after the release of Chinese electric car giant BYD’s Shark 6 ute.

Slow EV sales do not bode well for the federal government’s emissions reduction goals. It also confounds the government’s generous scheme to boost EV sales with a waiver on fringe benefits tax, which can discount a vehicle’s sticker price by up to $30,000 when combined with an employer’s novated lease arrangement.

EVs comprised about 7.7 per cent of total vehicle sales in the first half of this year, compared with 8.0 per cent in 2024 and 7.4 per cent in 2023.

Clean cars are expected to deliver a big chunk of the pollution cuts needed to reach the federal government’s commitment to net zero emissions by 2030.

Meanwhile, as part of their near-term climate targets NSW, Victoria and Queensland have set targets for EVs to reach 50 per cent of new passenger car sales by 2030 and 100 per cent by 2035.

“We’re just not getting the uptake, despite the fact there’s now 100 EV models available now,” Federal Chamber of Automotive Industries chief executive Tony Weber said.

The fringe benefit tax exemption was previously available for hybrid vehicles, but ran out on March 31. Weber said it should be reinstated, coupled with more support for EV charging infrastructure.

Motorists were reluctant to switch from an internal combustion engine vehicle due to the total cost of ownership of an EV, he said, including maintenance and charging costs, and concern about a lack of charging points making it inconvenient to use the car for daily commutes.

Electric Vehicle Council chief executive Julie Delvecchio said there had been a rise in sales of EVs and plug-in hybrids, which was good news for the electric transition. “An additional 14,000 EVs were sold in the first half of this year compared to the same period the year before,” Delvecchio said. “More electric vehicles on our roads benefit all Australians.”

The key difference from a pure battery electric vehicle is that hybrids can still be driven if the battery runs out.

Traditional hybrids have a diesel or petrol engine as well as an electric motor that recharges as the car decelerates. Plug-in hybrid vehicles have a battery that can be recharged at the socket as well as a petrol engine that can take over if the battery runs out.

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