LIFESTYLE GENERAL

Your guide to electric vehicles in Australia in 2023

09 February 2023

New models, new makes, new technology and unexpected luxury; 2023 will see Australia’s interest in electric vehicles climb as consumer confidence in the market grows. In 2022, the Australian market share of electric vehicles grew 65%, accounting for 3.39% of car sales. In 2023, the arrival of new models should drive sales even further.

New models, new tech, better prices

The biggest news for those looking to make an electric vehicle (EV) their next car purchase is the variety of new models about to enter the Australian market. Trusted, big-name car brands including BMW, Volkswagen, Subaru, Hyundai, Volvo and Toyota are all set to debut new models, with Mercedes and Maserati set to start selling luxury EVs in the Australian market in 2023. Emerging technology is also becoming more widely available, with Volvo set to launch their bidirectional, vehicle to grid option, the EX90. The breadth of options available should keep prices competitive and lower the entry-level price point.

“I think 2023 will be the year EVs are really going to move from niche to being mass adopted,” says Steven Cratchley, Pricing Manager, Advanced Technology and Future Mobility Lead for Suncorp Group.

“We're going to see some exciting new vehicles coming to our market,” he says, adding that one of the most eagerly anticipated launches was the electric ute.

What is ‘bi-directional’ charging?

Bi-directional charging is the ability to direct electricity from an electric vehicle’s battery into a home. While it is being pursued across the globe, in Australia it’s being developed under what is known as ‘vehicle to grid’ (V2G) technology.

Incentives, restrictions and policies

Increasingly, discussion around the future of EVs in Australia is focused on government. In some parts of Australia, new government policy is beginning to have a positive influence on market trends. In the ACT, for example, electric vehicles currently account for 9.5% of all cars. A new policy that will see the sale of all petrol/diesel cars banned by 2035 should push this number higher.

The change in federal government from the Coalition to Labor has raised the possibility of policy changes at a federal level being introduced soon.

“Previously, we haven't had many incentives in Australia that have helped drive adoption,” says Cratchley. “So now that's changed. But what's interesting is that in a lot of other countries, incentive programs have now been rolling back.”

“A lot of OEMs (Original Equipment Manufacturers) are looking to countries like Australia, where the [incentive] programs are now starting, as emerging markets to drive higher sales volumes.”

Along with the government, private business and insurance companies such as GIO are continuing to develop new products, and ensure existing ones meet the growing and different needs of consumers driving EVs.

Insuring your electric vehicle

With any new vehicle – electric ones included – you’ll probably be considering insurance around the time of purchase. GIO offers three levels of car insurance, each with different options so you can find a policy that suits your needs and budget.

Learn more about car insurance

Roadblocks: Demand, infrastructure and inflation

While consumer uptake of EVs has grown, infrastructure has struggled to keep pace, with more charge points needed. Currently, there are more than 3,000 public charge points in Australia. More than a third of these are in NSW, many of which are mapped and shared by an enthusiastic market of early EV adopters. According to Cratchley, the infrastructure issue will be met by a mix of infrastructure development and new technologies.

“Longer term, you've got so much interesting technology coming through around extending ranges – things like solid state batteries, which can be charged much quicker,” says Cratchley.

Another previous roadblock to early adoption has been demand outstripping supply, in part due to supply-chain issues caused by both the war on Ukraine and the ongoing impact of Covid-19 on parts. However, Cratchley has noted that supply and demand has begun to equalise, as supply chains recover and new models enter the market, lowering prices overall.

Want to know more about the trend towards electric vehicles and future technology in Australia? GIO is partnering with Mark Pesce, inventor, writer, entrepreneur, educator and broadcaster, on his hit podcast The Next Billion Seconds. With content themed all around electric vehicles, Mark’s pod is the place to tune up all your EV knowledge.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before making a decision about this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

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