Electric vehicle (EV) ownership in Australia is significantly concentrated in affluent inner-city areas, according to recent car registration data. This disparity poses a challenge for the Albanese government, which aims to boost EV adoption as part of its ambitious emission reduction targets. The findings were published in September by the Australian Automotive Association and are based on data collected in January.
Analysis shows that postcodes where EV uptake exceeds 5 per cent of total car registrations are primarily located in urban centres such as Sydney, Melbourne, Brisbane, and Canberra. In contrast, many outer suburbs have seen penetration rates between 1 per cent and 3 per cent, while regional areas often report rates below 1 per cent. For instance, Longreach in Queensland had no EVs among 2,931 car registrations, and Broken Hill recorded only 11 EVs out of 13,908 vehicles, resulting in a mere 0.06 per cent penetration rate.
Focusing on penetration rates provides a clearer picture of the EV transition than total registrations, which can be misleading due to varying population densities. The government has set a target for over 50 per cent of total car purchases over the next decade to be electric. Despite an increase in EV uptake among Australians, the majority reside in outer suburban areas where adoption remains disproportionately low compared to inner-city locales.
Top Locations for Electric Vehicle Adoption
The suburb of Haberfield in Sydney boasts the highest EV penetration rate, reaching almost 15 per cent, largely influenced by the significant number of registrations from EV rideshare company Splend, which is based there. Other areas with notable EV concentrations include Acton in Canberra and the Sydney central business district (CBD), both of which have penetration rates exceeding 7 per cent.
When examining raw numbers, the Brisbane CBD stands out with over 1,700 EVs registered from a total of approximately 32,000 vehicles. Large suburban regions such as Kellyville and Beaumont Hills in Sydney, along with Tarneit and Point Cook in Melbourne, also contribute to the increasing figures.
The National Automotive Leasing and Salary Packaging Association (NALPSA) highlights the significance of government incentives for workers contemplating a switch from traditional fuel vehicles. According to Rohan Martin, NALPSA’s chief executive, tax exemptions for EVs are particularly beneficial for individuals in outer suburban areas, where access to garages and on-street parking often facilitates easier charging options.
“Everyday workers, including teachers, nurses, and firefighters, tell our members that they simply wouldn’t have bought an electric vehicle if it wasn’t for the tax cut on EVs,” Martin explained.
Despite these incentives, the AAA data indicates that some areas benefiting from high fringe benefits tax (FBT) exemptions, such as Hoppers Crossing and Point Cook in Melbourne and Beaumont Hills in Sydney, still report low EV penetration rates ranging from 1.3 per cent to 3.1 per cent.
Challenges Ahead for Broader EV Adoption
The situation is even more pronounced in regional cities like Wagga Wagga, Bendigo, Ballarat, Toowoomba, and Wollongong. Among these, only Wollongong surpasses a 1 per cent market share with a penetration rate of 1.3 per cent.
Michael Hopkins, chief executive of the National Transport Commission, stated that the faster adoption of EVs in inner-city areas is likely due to higher household incomes and the suitability of EVs for shorter commutes. He acknowledged that the higher costs associated with EVs and concerns regarding driving range must be addressed to encourage uptake in outer suburbs and remote areas. “That’s going to be the hard part,” Hopkins noted.
Bridget McKenzie, the Coalition’s transport spokeswoman, shared insights from local dealers in regional areas, indicating challenges in selling EVs. “When you put a horse float, a trailer, or a caravan on the back of your car and load it up with your kids and your tent, that EV range reduces significantly,” McKenzie explained.
As Australia navigates the path toward a greener future, the disparity in electric vehicle adoption remains a significant hurdle, particularly in ensuring that all regions have access to this sustainable technology.
