Customers are turning away from battery electricity vehicles (EVs) and new vehicle sales have fallen at the same time as sales of plug-in and hybrid EVs continue grow, according to the Federal chamber of Automotive Industries (FCAI).
The FCAI, which represents vehicle and parts manufacturers, importers and distributors, said the new vehicle market remained flat following a weak second half of 2024 with sales falling 3.3% in January compared with the same period last year.
FCAI Chief Executive Tony Weber said sales of hybrids and plug-in hybrid vehicles continued to grow, making up almost 17.1% and 2.2% of new sales respectively.
“However, sales of battery electric vehicles were remarkably low and based on data from all sources, EVs accounted for just 4.4% of sales, the lowest since October 2022,” Weber said in a media release.
“This is a major concern because consumers are turning away from EVs at the time the Commonwealth Government has introduced the New Vehicle Efficiency Standard (NVES).”
He called on the Australian the Government to reconsider the steps it can take to build consumer confidence in EVs, otherwise its ambitious NVES targets would not be met.
FCIA figures showed plug-in hybrid electric vehicle (PHEV) sales in January were 88.5% higher than a year ago, according to the National Automotive Leasing and Salary Packaging Association (NALSPA).
NALSPA chief executive Rohan Martin called on Australian workers to secure a PHEV before 1 April, which marks the end of the fringe benefits tax exemption which had boosted sales of these vehicles and saved drivers thousands of dollars per year.
Australians have put more than 300,000 electric vehicles on the road since 2011 with most hitting the road over the last four years, according to the Electric Vehicle Council (EVC).
Citing analysis of its own and public data, the EVC said about 248,000 were battery electric and about 53,500 were plug-in hybrids.
“This highlights the recent surge in adoption due to cheaper EVs, more charging infrastructure and greater awareness of the environmental benefits of EVs,” EVC CEO Julie Delvecchio said in a media release.
