The number of new electric vehicles in Australia has tripled after years of lagging behind thanks to incentives introduced by state governments to encourage their uptake.
Australia recorded 24,078 electric vehicles sold in 2021, a significant increase from the 6,900 sold in 2020, meaning electric cars now account for 2.39% of the new car market.
The Tesla Model 3 was the best-selling electric car in Australia, with 15,054 vehicles sold last year – accounting for 62.5% of all electric vehicles sold. It was followed by the MG ZS with 1,388 and the Mitsubishi Outlander with 592.
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Sales figures now include the number of cars Tesla has sold in Australia following an agreement between the Electric Vehicle Council (EVC) and the US company.
For the past several years, Tesla has refused to release a regional breakdown, instead only releasing total global sales. The company delivered 936,172 electric cars worldwide in 2021.
In the past, industry bodies that monitor changes in the car market have been forced to make informed estimates, but Tesla’s regional breakdown shows the number of electric vehicles on Australian roads.
EVC chief executive Behyad Jafari said the sales figures represent a milestone in a market where electric vehicle sales have lagged for years due to mixed government signals, especially when compared to other parts of the world.
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“We’ve waited a few years to hit the 1% mark, so to skip that and go straight to 2% is a big deal,” Jafari said.
He said the push was due to the mix of supportive measures put in place by individual states and territories to support inclusion, including stamp duty exemptions and rebates.
Although New South Wales, Queensland and Victoria have seen solid growth and market share has fluctuated around the national average, the Australian Capital Territory – widely regarded as the country with the most generous policies – has outperformed all other jurisdictions with a market share of 5.87 %,
Even with the positive numbers, Jafari said more could be done provided there is support from the federal government.
“There’s no reason why we shouldn’t already be at 20%,” Jafari said. “We have a federal government that is talking about achieving these goals by 2030, when in fact we could do it today. It’s all about them doing their job.”
Even at 2.39% of the market, Australia’s EV sales lag behind other countries.
Electric vehicles make up 11.2% of the market in Western Europe, according to data from Schmidt Automotive Research, with registrations for battery electric vehicles surpassing diesel for the first time in December last year.
Although the US is also seen as lagging behind, electric cars account for around 3% of the new car market – still more than in Australia
But with demand expected to pick up in the US and elsewhere in 2022, Australian supply chain companies are already looking to overseas opportunities.
Brisbane-based Tritium, a manufacturer of fast-charging systems for electric vehicles, is expected to announce the location of its new US factory in the coming weeks, which should be up and running by September.
The company’s share price closed at $7.74 on Wednesday after successfully listing on the Nasdaq this week, earning longtime supporter Trevor St Baker A$344.7 million for his 31.5 million shares.
The Brisbane plant is currently capable of producing 5,000 units per year and the new factory would triple the company’s capacity without having to ship any material overseas.
With plans to expand into Europe, Tritium could quickly position itself as one of the world’s largest manufacturers of fast charging systems.
