The latest wave of EV research conducted by carsales offers a comprehensive look into the shifting perspectives and barriers faced by Australian consumers. Let’s delve into the key findings and understand what they mean for the industry.
One of the most notable trends from the research is the continued decline in lifetime EV consideration. As of May 2024, only 34% of respondents have considered purchasing an EV, a significant drop from 56% in June 2022. This decline can be largely attributed to financial pressures such as the increasing cost of living and rising interest rates, which have impacted consumer confidence. The price of EVs remains the most significant barrier, cited by 59% of respondents. Additionally, 64% of buyers reported having to adjust their car budget due to these economic factors, further pricing out many potential EV buyers.
However, it’s not just financial concerns causing hesitation. The perceived lack of charging infrastructure and the time required to charge an EV are also significant deterrents with half of all respondents indicating charge time as their main deterrent (up from 42% in November 2022). While cost of living and EV prices remain high, yet stable, the growing concern over charging time highlights the need for better education around infrastructure to support EV adoption.
When looking ahead to 2035, petrol vehicles are the preferred choice for consumers, well ahead of diesel, hybrid, and electric vehicles. This marks a substantial shift from June 2022, when EVs were leading future intentions. Interestingly, despite being seen as environmentally conscious, Gen Z is the least likely to foresee themselves driving an EV by 2035 (12%), with a stronger affinity towards internal combustion engine (ICE) vehicles (58%). This highlights that the environmental benefits of EVs are not enough to overcome the perceived financial barriers for this generation.
Despite these challenges, some EV brands are making headway. BYD, known for its competitive pricing, has seen a drastic rise in popularity and is now the second most well-known EV brand in Australia, after Tesla. This suggests that affordability can significantly enhance brand recognition and consideration among consumers.
Government subsidies also play a critical role in influencing EV purchases, yet awareness remains low. Less than 20% of car buyers are aware of the specific details of these subsidies. The effectiveness of these incentives is contingent on overcoming current barriers such as the availability of charging stations and battery longevity. Interestingly, considerers are more likely to be influenced by subsidies than non-considerers, underscoring the need for better communication and education about these incentives.
The findings from carsales’ latest EV research underscore the complex interplay of financial, infrastructural, and informational barriers that continue to hinder the adoption of electric vehicles in Australia. While price remains a predominant concern, the importance of effective communication about government subsidies and improving charging infrastructure cannot be overstated.
SURVEY METHODOLOGY
The carsales Research team conducted the 8th wave of the EV survey to gauge and track car buyers’ awareness and sentiment towards electric vehicles (EVs). The survey was conducted on the carsales website, with the results being weighted by age to reflect the Australian population.
The survey appeared as a pop-up on the desktop and mobile versions of the carsales website and was completed by 2,096 respondents from May 20th to May 30th 2024.
Source: EV Survey W8, May 2024 n=2096. EV owners and non-owners, Weighted to Age
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