Money Research with Money Matchmaker®
Is there a strong appetite for electric vehicles among the Australian population?
A Money.com.au Study January 2023
Last updated: 19 November 2023
About the study
Money.com.au surveyed an independent panel of 1010 Australians to gauge the expected take-up of electric vehicles among the public. Respondents were asked whether they plan to purchase an electric vehicle, and when they would do so. The respondent pool was also asked to identify what is deterring them from purchasing an electric vehicle, such as high vehicle costs and the lack of infrastructure.
The pool of survey respondents matches the age and geographical spread of the Australian population.
Questions
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Are Australians interested in purchasing electric vehicles?
Money.com.au sought to uncover the proportion of Australians that are willing to purchase an electric vehicle, and when they would make such a purchase. The survey found:
- 46% of Australians aren’t planning to purchase an electric vehicle
- 34% will buy an electric vehicle when they are ready to upgrade their existing car
- 8% will buy an electric vehicle before they are ready to upgrade their existing car
- 1% already own an electric vehicle
- 11% of respondents don’t drive
Which statement is true for you?
Responses by age group
Older respondents were less likely to purchase an electric vehicle, with 54 per cent stating their next car will not be an electric vehicle. This compares with:
- 42% of 31-50-year-olds
- 40% of under-30s
In contrast, younger respondents, by a smaller margin, are poised to invest in an electric vehicle when they’re ready to upgrade their car.
- 36% of under-50s will buy an EV when they’re ready to upgrade
Compared with:
- 31% of over-50s
Interestingly, younger respondents were also more willing to purchase an electric vehicle before they’re ready to upgrade their car, with 15 per cent of under-30s selecting this response. This compares with:
- 8% of 31-50-year-olds
- 3% of over-50s
Which statement is true for you? By age.
Responses by States
Across the States, respondents residing in Queensland are least likely to purchase an electric vehicle as their next car with over half (52 per cent) stating that their next car will not be electric. This compares with:
- 49% of West Australians
- 45% of Victorians and NSW respondents
- 41% of South Australians
Similar proportions of respondents across the States indicated they would purchase an electric vehicle when they’re ready to upgrade their car. This included:
- 36% of NSW respondents
- 35% of West Australians
- 34% of South Australians
- 33% of Victorians
- 30% of Queenslanders
Which statement is true for you? By State.
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) |
|---|---|---|---|---|---|
I will buy an electric vehicle when I am ready to upgrade my existing car | 36 | 33 | 30 | 34 | 35 |
I will buy an electric vehicle BEFORE I am ready to upgrade my existing car | 9 | 8 | 7 | 10 | 5 |
My next car will not be an electric vehicle | 45 | 45 | 52 | 41 | 49 |
I already own an electric vehicle | 1 | 0 | 1 | 1 | 2 |
I don’t drive | 9 | 14 | 10 | 14 | 9 |
What is deterring Australians from purchasing electric vehicles?
Money.com.au asked the survey respondents who weren’t interested in purchasing an electric vehicle to identify the reason why they wouldn’t make the switch. Respondents could identify their top deterrent from a list of five.
- 41% said the high cost to purchase an electric vehicle was their top deterrent to purchasing one
- 21% were deterred by the lack of charging stations
- 17% believe that an electric vehicle is not suitable for their needs
- 15% are worried that high energy prices would increase the cost to charge an electric vehicle
- 6% are worried that the charge won’t last for the duration of their trip, and they will get stuck
What is stopping you right now from purchasing an electric vehicle?
Responses by age group
Money.com.au analysed respondents across age groups and found that older Australians were most deterred by the purchase price of electric vehicles.
- 43% of over-30s believe the price of electric vehicles are too high
Compared with:
- 37% of under-30s
Younger respondents appeared most deterred by high energy prices, believing this would increase the cost to charge an electric vehicle, with 23 per cent of under-30s indicating this was the top reason preventing them from purchasing one. This compares with:
- 15% of 31-50-year-olds
- 9% of over-50s
What is stopping you right now from purchasing an electric vehicle? By age.
Responses by States
Across the States, respondents in Western Australia were most deterred by the high cost of electric vehicles, with 48 per cent indicating this was the top reason preventing them from purchasing one. This compares with:
- 41% of Victorians and NSW respondents
- 39% of South Australians
- 38% of Queenslanders
A higher proportion of Victorians and Queenslanders were the most hesitant to invest in electric vehicles due to the lack of charging stations available, at an equal 25 per cent. This compares with:
- 21% of NSW respondents
- 18% of South Australians
- 11% of West Australians
Similar proportions of respondents across the States admitted an electric vehicle was not suitable for their needs, identifying it as a top reason preventing them from purchasing one. This includes:
- 23% of West Australians
- 21% South Australians
- 19% of Queenslanders
- 15% of Victorians
- 14% of NSW respondents
What is stopping you right now from purchasing an electric vehicle? By State.
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) |
|---|---|---|---|---|---|
The lack of charging stations | 21 | 25 | 25 | 18 | 11 |
High energy prices – the cost to charge the car will be too high | 15 | 16 | 13 | 14 | 11 |
Electric vehicle prices are too high | 41 | 41 | 38 | 39 | 48 |
An electric vehicle is not suitable for my needs | 14 | 15 | 19 | 21 | 23 |
I am worried the charge won’t last the duration of a trip and I’ll get stuck | 9 | 3 | 5 | 8 | 7 |
Electric cars have become a lot cheaper via a Novated Lease
As of July 01, 2022 eligible electric cars purchased via a novated lease will not be subject to fringe benefit tax (FBT).
This FBT exemption applies to eligible low- and zero-emission vehicles valued up to the luxury car tax threshold ($84,916 in FY2022/23). This is a saving of up to $10,000 on some vehicles.
Even for drivers who finance their electric car the traditional way, some banks and other lenders offer 'green car loans' with discounted interest rates.
