carsales study highlights consumer consideration, adoption of Electric Vehicles in Australia and a gap in the market for affordable EVs in popular body types.
carsales has today released a comprehensive study that highlights the market, political, social, and behavioural factors influencing consumer consideration and adoption of electric vehicles (EVs) in Australia.
carsales’ Moving Electric Vehicles Forward report, is a culmination of four pieces of consumer research that uncovers the optimism, uncertainty and challenges ahead for EVs in Australia, from the eyes of consumers. The study references two carsales consumer insights studies in June 2019 and February 2021, a carsales onsite survey in May 2021, and a Google Gearshift study in 2020.
carsales Moving Electric Vehicles Forward study validates consideration for EVs is high on carsales however this has not translated into sales conversion – 47% of survey respondents have considered purchasing an EV, and only 3% have converted to a sale.
The highest consideration by age group (75%) are Aussies aged between 25 and 34, contrasting the fact 69% aged under 24 have not considered an EV.
“A deep dive at a demographic level was intended to show the huge variance that exists in many factors that need to be taken into consideration to scale EV take up in Australia,” said carsales Chief Marketing Officer, Kellie Cordner.
“While those aged between 25 and 34 had the highest consideration for EVs, they also had the highest concerns around price to purchase, range and charging stations and were, interestingly, the most notorious for filling up only when the light comes on,” continued Cordner.
Consumers’ top five factors when thinking about purchasing an EV are cost, vehicle range, vehicle performance, availability of charging stations and fuel economy/cost to charge. According to survey respondents, the most important factors are initial purchase cost (42%) and vehicle range (39%).
Price, driving range and availability, and ease of charging, are common barriers to EV adoption. This sentiment correlates with Google’s survey, where 44% of consumers cited cost as the biggest barrier. However, in the carsales survey, both initial purchase cost and vehicle range decreased in concern when compared to the 2019 results of the same survey. The factors fell five and seven percentage points respectively.
With 65% of survey respondents indicating they would be more likely to consider EVs as they become more affordable, the carsales EV study has exposed a current gap in the market for affordable EVs, particularly in the body types Australians love.
Currently, new car buyers have 14 EV models from which to choose Down Under. There are no options under $40K, and no EV Ute or SUVs to rival the off-road capabilities of Ford Ranger, Toyota Hilux and Toyota Landcruiser – models regularly in the top most searched cars on carsales.com.au.
“There is good news for new EV centric brands coming to Australia. Our study shows consumers are open to influence with 73% of respondents likely to change brands to an EV that meets their needs,” Cordner stated.
“Consumers are looking to carsales for EV-specific content and YoY we have seen a 134% increase in page views. This is a growing market and as Aussies become more interested and considered in their approach, better education and advice is required to improve consumers’ understanding around key barriers to EV adoption.
“To meet the evolving needs of consumers in this space, brands need to think about awareness, practicality and affordability,” said carsales’ Cordner.
