New research released today by the Australian Automotive Dealer Association, the EV & Hybrid Vehicle Wave 3 Insights Report, highlights that electric vehicle (EV) sentiment has remained largely stagnant since the previous survey about a year ago as economic pressures weigh on consumer decision-making.
The research is the third wave of tracking EV sentiments across the community, following similar studies conducted in September 2022 and January 2024, with feedback collected from a sample of 2,000 Australian drivers (representative by age, gender and household location across Australia).
“Intention to purchase an EV has plateaued with 39 per cent of respondents saying they would consider an EV for their next vehicle – largely unchanged from two years ago,” said AADA CEO James Voortman.
“Affordability remains the biggest barrier to EV adoption, with 55 per cent of respondents stating that EVs are simply too expensive, however, this has improved from 62 per cent in the first survey in September 2022, ” he said.
“Economic pressures are clearly influencing buyer behavior, with 64 per cent of respondents saying they are less willing to pay a premium for an EV due to current cost-of-living challenges. The average price premium consumers are willing to pay for an EV has dropped to just 6 per cent, down from 8 per cent in January 2024.”
“The research shows that respondents are more likely to consider traditional hybrids (52 per cent) than EVs (39 per cent) or plug-in hybrids (36 per cent), a finding which is backed up by current new car sales data.”
Other key findings from the report include:
- While 58 per cent of respondents consider EVs are better for the environment, this has fallen from 67 per cent since early 2024.
- Concerns over EV resale value and repair costs have increased since early 2024, adding to the hesitancy around adoption.
- The trend towards purchasing medium SUVs continues, with 32 per cent of respondents considering this body type for their next vehicle.
- Higher-income households are nearly twice as likely to consider purchasing an EV compared to those on lower incomes.
- Rural households remain significantly less inclined to purchase an EV compared to metro-based households.
- Over the last 10 months support for governments incentivising EVs has reduced from 69 per cent to 62 per cent.
- Support for a fuel efficiency standard is overwhelming, with 78 per cent of respondents supporting the policy.
“These findings underscore the importance of ensuring that policies aimed at boosting EV uptake consider affordability and infrastructure accessibility. With the recently introduced New Vehicle Efficiency Standard (NVES) now in effect, it is crucial that the framework supports consumer choice without compromising vehicle affordability,” Mr. Voortman added.
“If EV adoption is to accelerate, industry and government must work together to address cost concerns and improve the value proposition for consumers.”
