Electric Vehicles Go Mainstream in Australia as Prices Drop and Resale Value Improves

The era of an electric vehicle as a lifestyle statement in Australia is over – they’re now firmly mainstream.

Analysis of auction figures and data collected by the NRMA shows that most former deterrents – including high upfront prices and weak resale values – have been corrected, paving the way for a surge in sales that’s been accelerated by the oil crisis.

Nicole Taylor, a broker at Loan Market, says about one in three loans are now put towards EVs.

“I’ve been in the car sector for about 20 years and over the last two, that cautiousness in the market has been disappearing fast,” Taylor says.

“Clients are comfortable that there’s infrastructure for EV owners, that there are technicians that can actually service these cars and spare parts will be available. All of those costs have come down dramatically.”

Sales hit a record in May, with EVs and plug-in hybrids accounting for 30% of new vehicles sold, according to the Electric Vehicle Council.

Tesla’s Model Y was Australia’s bestselling car that month, muscling out its combustion engine competitors. Meanwhile, Chinese brands including BYD and GWM-owned Haval have been rapidly increasing their share of the EV market.

Chinese makers now account for well over half of Australia’s EV market, Commonwealth Bank analysis shows.

The influx of new electric models has meant the upfront price difference from petrol vehicles has narrowed dramatically, while EV buyers also benefit from lower running costs.

NRMA’s car ownership report found that there are now at least five EVs priced around or below the $30,000 mark, all of which are Chinese brands.

Inadequate infrastructure still poses the single biggest barrier to further growth, with the Commonwealth Bank noting this week that a lack of public charging infrastructure represents the key obstacle to Australia adopting commercial EVs such as electric trucks.

Global trend amid fuel fears

Some of the big lift in May sales was linked to orders placed in March, when fuel prices rocketed shortly after the start of the US-Israel war on Iran.

The electric trend is evident around the world, led by a 26% year-on-year increase in EV sales in Europe, according to Benchmark Mineral Intelligence.

The notable exception is the US, where EV sales are down more than 25% over the same period, after government policy changes made owning an electric vehicle less attractive.

Meanwhile, the Australian EV market has matured enough that secondhand EVs are retaining more of their value, according to auction house Pickles, as buyers become more comfortable with battery longevity and secondhand use.

Three-year-old Tesla Model 3 vehicles, which used to resell in the low-$30,000 range, are now priced closer to $40,000, Pickles auction results found.

Used BYD Atto 3 models that had been selling for about $25,000 are now priced at about $30,000.

Brendon Green, general manager of automotive solutions at Pickles, says used EVs are now competing with petrol vehicles for buyers’ attention.

“What was once seen as a premium purchase is becoming a more practical option, particularly for people who are happy to buy used,” Green says.

MotorMetrics’ live analysis of vehicle inventory shows that three BYD electric hybrids, the Shark 6 and Sealion 6 and 7, are among the most sought after vehicles at dealerships with the lowest levels of supply.

Jake Sale, founder of the Perth-based MotorMetrics, says the car market is changing quickly.

“Chinese cars are just super-popular now and the market is completely changing in Australia,” says Sale.