THE NEW YORK TIMES: How electric cars took hold in Australia, overtake petrol-powered vehicles for first time

Australian sales of electric vehicles overtook petrol-powered cars for the first time in August, official data shows, with experts saying that higher oil prices resulting from the US war with Iran was one of the main reasons for the shift.

The country is known for having vast distances between cities and a population that loves to explore the bush and outback, often via car or caravan.

The electric vehicle transition has been slow, with many drivers concerned that electric cars could not cope with long road trips.

But slowly, electric cars have become more popular as costs have come down thanks to Chinese imports and improvements in charging infrastructure.

The fuel shortages that resulted from the US-Israeli war with Iran and the closure of the Strait of Hormuz this year added another reason for people to make the switch: energy security.

“What began as a climate and technology story is increasingly becoming an energy security story,” said Hussein Dia, a professor of transport technology at Swinburne University in Melbourne.

“For a large number of years, Australians asked whether an EV could take them far enough, but the fuel crisis has basically prompted another question: How exposed do I want to be to the next global oil shock?” he said.

Professor Dia added that for a long time electric cars had been touted for their environmental benefit, appealing to only a select group whose interests aligned with concerns over the climate.

But as cost-of-living pressures mounted, and oil shortages hit as a result of the Hormuz closure, attitudes have changed.

“The cost pressures are now as prominent as people who are wanting to do things for the environment,” he said.

In 2020, about 1770 battery-electric cars were sold in Australia, according to data from the peak industry group, the Federal Chamber of Automotive Industries.

By 2024, 91,500 battery electric cars were sold, data from the chamber and Electric Vehicle Council show (accounting for new reporting methods).

To the end of July this year, about 127,370 battery electric cars were sold. At the same time, total sales of petrol cars have declined.

The growth in EV sales has continued — last month, electric car sales in Australia overtook petrol cars for the first time, data from the government showed.

Climate Change and Energy Minister Chris Bowen said that it was a “landmark moment” and that Australians were “voting with their wallets for cars that are cheaper to run, cleaner and reduce their exposure to international petrol prices shocks”.

Oil Prices Still High

Retail gasoline prices in Australia last week were about 30 per cent higher than the previous year, according to the Australian Institute of Petroleum.

Australia imports about 90 per cent of its fuel, depending on deliveries from Asian refineries, which in turn receive most of their crude oil from the Middle East, via the strait.

As fuel prices rose after the United States and Israel attacked Iran in late February, Australian Prime Minister Anthony Albanese dashed across Asia to shore up fuel and fertiliser supplies. He also halved the excise on gasoline and diesel from April through June.

Despite these efforts, many Australians cancelled their Easter vacation plans, which often involve long road trips to the beach or country towns, as they struggled to pay at the pump, local news media reported.

Range anxiety had morphed into a panic over gas prices — and availability.

Rohan Martin, CEO of the National Automotive Leasing and Salary Packaging Association, said a number of customers who purchased electric cars this year had previously been “sitting on the fence”.

“All of a sudden, when the cost to fill up their family vehicle has close to doubled, that’s been a tipping point for them,” he said.

Among them was Adrian Camilleri. He was already planning to buy an electric car this year to cater to his growing family and desire to live more sustainably. But inflated fuel prices “added another reason”.

“One of our concerns was about energy independence and seeing how something so far away could impact prices locally so dramatically and so quickly,” he said.

He will go camping with his family to Australia’s Blue Mountains, about a 90-minute drive from Sydney in the coming weeks.

Among the essentials, they will also take a fridge, which can run on the vehicle’s electric battery and help keep the family well fed.

“We basically have a battery on wheels,” he said, adding that “driving the EV is much more fun” because it is more responsive than his old gas car.

Slow Off the Mark

Australia has “definitely been behind the eight-ball” compared with other countries when it comes to electric car adoption, said Aman Gaur, the head of legal policy and advocacy at the Electric Vehicle Council, an Australian industry body.

That was, in part, because of a lack of policies encouraging manufacturers to bring electric cars into the country, he said.

The issue had also become political. In 2019, former Prime Minister Scott Morrison accused the opposition of wanting to “end the weekend” — a reference to Australians using more powerful cars to tow boats or caravans — when it unveiled policies to encourage electric car take-up.

New policies in recent years, including the introduction of new vehicle efficiency standards and electric car discounts, have resulted in the steady growth in the electric car sector, Mr Gaur said.

Chargers have also proliferated in some parts of the country.

Car manufacturers, particularly from China, have also rolled out cheaper models. Manufacturers based in China supplied five of the 10 highest-selling EVs in August, data from the Federal Chamber of Automotive Industries shows, with brands such as BYD and Chery now common on Australian streets.

If Australia’s electric car growth is to continue, the Government will need to make the vehicles and chargers more widely accessible, Mr Gaur said.

“When it comes to the energy transition, we have to make it something that is available for the grand majority of Australians in order for it to succeed,” he said.

This also includes looking at how to electrify the country’s freight sector, including its trucks, which are some of the biggest fuel guzzlers.

There has been some momentum, including the electrification of some trucks in Australia’s postal delivery service, but there is still a long way to go, the experts said.