EVs lead crash in new car salesThe sluggish uptake of battery EVs comes despite a raft of financial incentives offered by federal and state governments.
These include a higher luxury car tax threshold and exemptions from fringe benefits tax and customs duty.
Battery EVs are also exempted from paying road user charges via fuel excise, which is effectively a subsidy.
However, several jurisdictions reduced rebate programs and tax exemptions for 2023 and 2024.
The $3,000 rebates in New South Wales and South Australia terminated on January 1, this year.
The New South Wales government also eliminated a stamp duty rebate for new and used zero-emission vehicles worth
up to $78,000. Both incentives have been offered since 2021.
Victoria’s $3,000 rebate, which began in 2021, expired in the middle of 2023.
In the ACT, the incentive of two years of free registration expired on June 30, 2024.
Queensland’s $6,000 incentive for electric vehicles expired in September 2024.
The Australian Energy Market Operator (AEMO) recently lowered its forecast for battery EV adoption over the next decade
from seven million to four million units.
A recent McKinsey Mobility Consumer survey shows that 49% of Australian EV owners are “very likely” to return to ICE vehicles.
Respondents’ main worries were the poor state of public charging infrastructure (35%) and expensive purchase costs (34%).
The comparison website Compare the Market recently raised concerns about ownership expenses.
The study of 12 insurers found that electric vehicles cost about 50% more to insure than their ICE counterparts.
To read the full story, click this link:
https://www.macrobusiness.com.au/2024/12/evs-lead-crash-in-new-car-sales/
