Research conducted by NRMA Insurance indicates that increasing familiarity with electric vehicles (EVs) could significantly accelerate their adoption in Australia. The study reveals that as Australians gain more knowledge about EVs, their likelihood of considering one for their next vehicle purchase rises dramatically, facilitating a quicker transition to electric mobility. The report, titled “Changing Gears: The Road Ahead for EV Adoption in Australia,” produced by Ipsos, shows that only 20% of Australians planning to buy a vehicle in the next five years are considering an EV. However, this figure jumps to 32% among those who are already familiar with electric vehicles.
The report also points to a growing interest in EVs, with only 26% of Australians currently feeling knowledgeable about them, while nearly half (47%) express a desire to learn more. The number of Australians open to considering an EV within the next decade stands at 32%, compared to just 20% for the next five years.
For those not considering an electric vehicle for their next purchase, the main concerns include driving range (54%) and charging times (53%). Despite the fact that most Australians drive less than 50 kilometers a day—well within the range of many EVs—there remains considerable apprehension regarding long-distance travel and charging infrastructure. Additionally, 44% of non-considerers express concerns about battery fires, despite research indicating that road-registered EVs do not pose a greater fire risk than traditional internal combustion vehicles.
NRMA Insurance CEO Julie Batch emphasizes the need to dispel myths surrounding range anxiety, safety, and cost. She advocates for increased support for the second-hand EV market and the implementation of standardized battery testing as essential measures to enhance consumer confidence in electric vehicles.
Batch notes, “The good news is that more affordable models are now becoming available. This expansion will invigorate the used-car market and make EVs more accessible to a wider audience. The research shows that 58% of Australians interested in EVs are open to purchasing a used car, making this a practical option for many drivers.”
The report highlights that while current EV owners are confident in their vehicles’ sustainability and cost-effectiveness, skepticism remains among many Australians. Only 30% view EVs as the most cost-effective choice, and just 42% consider them the most environmentally friendly option.
High costs present another barrier, with only a few models priced under $40,000 and a limited second-hand market making EVs less attainable for budget-conscious consumers. Despite the higher initial purchase price, many are unaware that lower running and maintenance costs can make EVs more economical over their lifetime. For instance, an average car driven 13,700 kilometers annually could save around $1,000 each year in fuel costs.
