Is Australia ready for your electric vehicle?

THE UPTAKE OF ELECTRIC VEHICLES IN AUSTRALIA

First up, to understand how Australia is doing on the EV market, we need to see how we compare to the rest of the world. With many countries committing to a variety of carbon emissions targets in the next decade, world leaders are working towards phasing out the production of internal-combustion-engine (ICE) vehicles that rely on fossil fuels. 14 countries including the UK, Germany and Norway have committed to this goal within the next ten years. These declarations have seen major car companies such as Jaguar, Land Rover, Volvo, Mazda, Nissan and Honda follow suit and also set targets to go fully electric.

Unfortunately, it seems that Australia is falling a little bit behind in the EV race, and this is due mostly to the lack of federal policy. Without government incentives to encourage Aussies to buy EVs, new models are unlikely to reach Australia. Luckily, Australia’s states and territories have been taking matters in their own hands by offering incentives and setting targets. With these efforts, it’s expected that 58 EV models will be available in Australia by the end of 2022, compared to the 31 that were available in 2021.

WHAT INFRASTRUCTURE DO WE NEED?

Before you get excited about how many EVs will be coming your way in the coming months, Aussies need to consider if they have the resources in their areas to accommodate an EV. A key barrier to the uptake of EVs in Australia is a lack of EV infrastructure, specifically the availability and accessibility of charging stations. Without access to adequate EV infrastructure, drivers can experience range anxiety - the fear of possibly running out of battery. Nobody wants to end up out in the middle of nowhere with fuel as your only option for your electric car.

SO, WHAT DO WE CURRENTLY HAVE IN PLACE?

At the moment, charging stations are typically small-scale and can only service a few vehicles at a time. With how many EVs are predicted to make up Australia’s fleet in the coming years, we’re going to need some large-scale charging infrastructure. Australia currently has just over 3000 charging points, which covers 7.7 million square kilometres, and this number is increasing rapidly.

Another consideration is where you’ll be charging your EV. It’s different from a normal car; you’ll rarely be charging it up from empty to full. Most EVs can comfortably travel up to 500km before needing to be recharged, and research by Energy Networks Australia found that 90 percent of EV owners in Australia charge their vehicle at home. EV drivers are reporting that they only really need to charge their vehicles once or twice a week, and even then it’s more of an opportunistic charging to keep the battery topped up. Ideally, Australia would focus on expanding the shared charging infrastructure in locations such as workplaces and shopping centres to make charging more accessible and fully integrated into our everyday lives.

The major concern for EVs in Australia is access to charging infrastructure along major highways where drivers will be travelling long distances between battery top ups. Not only will charging infrastructure need to be placed frequently and strategically along these roads, Australia will need to adopt fast charging technology. This technology will allow drivers to top up their batteries by 80 percent in as little as 20 minutes.

WHAT ARE THE ALTERNATIVES TO ELECTRIC VEHICLES?

It’s no secret that EVs in Australia are hard to come by and can be pretty expensive. With this in mind - and the lack of government support - it might be a good idea to consider some temporary alternatives to EVs that could better suit your needs.

Plug-in hybrid EVs (PHEV) and hybrid EVs (HEV) both combine an ICE engine and an electric motor to reduce fuel consumption, but there’s a few distinct differences between the two. HEVs swap between the electric motor and ICE depending on the driving conditions, and will automatically recharge the battery. HEV owners don’t have to monitor the battery level or plug it into power outlets, but can only refuel with petrol. PHEVs on the other hand generally have a larger battery pack and can swap to electric only when the EV mode is selected until the battery power is depleted. This means that PHEV owners have the choice of topping up with either electricity or fuel, depending on the driving conditions.

If you’re keen to find other EV alternatives on the market, go here to find out what’s right for you.

To find out more about NRMA Car Insurance, simply call us on 132 132 to get a quote or find us online 24/7 at nrma.com.au.

"This content is intended to be general in nature and is not financial or professional advice. We recommend you obtain independent professional advice relevant to your circumstances, before making any financial or commercial decisions."