URGENT UPDATE: Petrol-powered vehicles in Australia are rapidly losing market dominance, as new data reveals they may be outnumbered by electric and hybrid cars within just two years. The Australian Automobile Association’s latest Electric Vehicle Index, released on October 16, 2023, shows a staggering drop of over 11 percentage points in the market share of internal combustion engine cars in just two years.
This dramatic shift comes as electric vehicle (EV) sales hit a record high during the September quarter. While traditional petrol vehicles accounted for 69 percent of car sales, this marks a significant decline from more than 81 percent during the same period in 2021, equating to 37,000 fewer petrol vehicles sold. In contrast, electric vehicles now boast a peak market share of 9.7 percent, with hybrids at 16.5 percent and plug-in hybrids at 4.1 percent.
The urgency of this trend is underscored by Australia’s ambitious 2035 environmental target, which aims to increase low-emission vehicles on the road. However, the elimination of state rebates for electric car purchases complicates this transition. Aman Gaur, policy head at the Electric Vehicle Council, emphasizes the economic and environmental benefits of this shift.
“The trend is clear: Australians are moving away from petrol cars, these expensive-to-run, environmentally dangerous cars, to cars that are better for the environment and better for the hip pocket,” Gaur stated. He further predicts that by the end of 2027, petrol cars could comprise less than 50 percent of the market.
Factors such as rising petrol prices and inflation are influencing more motorists to seek cost-effective alternatives. Despite the decline in petrol vehicle popularity, these cars still dominate sales in many categories, although hybrids and electric vehicles together make up over 80 percent of medium-sized vehicle sales and have overtaken petrol options in the medium-sized SUV market.
To meet the 2035 emissions target, Gaur stresses the need for a substantial increase in low-emission vehicle adoption. He calls on state governments to reconsider the financial incentives previously offered for electric vehicle purchases that were removed in the past year.
“The federal government’s ambition is laudable, and we’d really encourage the state governments who have pulled back all vehicle incentives in the last 12 months to recommit themselves,” Gaur urged.
In summary, the shift towards electric vehicles in Australia is not just a trend but a necessity to meet future environmental goals. As Australians increasingly opt for greener alternatives, the automotive landscape is poised for significant changes in the coming years. Stay tuned for further updates on this developing story.
