Electric Vehicles - Australia

Australia

In 2024, the projected revenue in the Electric Vehicles market in Australia is expected to reach AUD US$3.3bn.
It is anticipated that this revenue will exhibit an annual growth rate (CAGR 2024-2028) of 17.05%, resulting in a projected market volume of AUD US$6.2bn by 2028.
Moreover, the unit sales of Electric Vehicles market in Australia are projected to reach 97.69k vehicles in 2028.
Additionally, the volume weighted average price of Electric Vehicles market in Australia is expected to be AUD US$64.6k in 2024.
It is worth mentioning that, from an international perspective, the country with the highest revenue generation in the Electric Vehicles market is in China, which is projected to reach AUD US$319,000m in 2024.
Australia's electric vehicle market is slowly gaining traction, with an increasing number of government incentives and infrastructure developments supporting its growth.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in Australia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: Customers in Australia are increasingly drawn to electric vehicles due to their environmental benefits and cost savings. Electric vehicles produce zero emissions, making them more environmentally friendly than traditional petrol or diesel vehicles. Additionally, the cost of electricity is generally lower than the cost of petrol, resulting in potential savings for electric vehicle owners. As a result, more customers are opting for electric vehicles as their primary mode of transportation.

Trends in the market: One of the key trends in the Australian Electric Vehicles market is the increasing availability of charging infrastructure. The government and private companies have been investing in the installation of charging stations across the country, making it more convenient for electric vehicle owners to charge their vehicles. This trend has helped alleviate concerns about range anxiety and has contributed to the growth of the electric vehicle market. Another trend in the market is the introduction of new electric vehicle models by various manufacturers. As technology improves and production costs decrease, more car manufacturers are entering the electric vehicle market and offering a wider range of models to customers. This increased competition has led to a greater variety of electric vehicles available to Australian customers, further driving the growth of the market.

Local special circumstances: Australia's vast size and long distances between cities present unique challenges for the adoption of electric vehicles. The limited range of some electric vehicles can make long-distance travel more difficult, especially in areas with limited charging infrastructure. However, the increasing availability of charging stations and the development of more advanced battery technology are helping to address these challenges.

Underlying macroeconomic factors: The Australian government has implemented various policies and incentives to encourage the adoption of electric vehicles. These include financial incentives such as grants and rebates, as well as tax benefits for electric vehicle owners. These government initiatives have played a significant role in promoting the growth of the electric vehicle market in Australia. Furthermore, global trends towards sustainable and clean energy solutions have also influenced the growth of the electric vehicle market in Australia. As countries worldwide strive to reduce their carbon emissions and combat climate change, the demand for electric vehicles has increased. Australia, as a signatory to international agreements on climate change, has been actively promoting the adoption of electric vehicles as part of its commitment to reducing greenhouse gas emissions. In conclusion, the Electric Vehicles market in Australia is experiencing significant growth due to changing customer preferences, emerging trends in the market, and local special circumstances. With increasing availability of charging infrastructure, a wider range of electric vehicle models, and government incentives, the electric vehicle market in Australia is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).