In the 12 months up to June 30 this year, sales of EVs doubled. There were 157,000 EV sales in the first six months of the year, more than all of the EVs sold in the whole of last year.
One in four new cars are now EVs, and that growth is absolutely incredible. And the weekends keep getting better. Until not too long ago, you could find only a small number of new EV models on the market, and most were really expensive compared to petrol cars. Now there are 196 models to choose from, many of them on the affordable end of the market, including one new model being offered brand new for under $20,000.
Some of us are buying them because they're good for the climate, but most people are buying EVs for a whole host of reasons. We're looking at the war in the Middle East, we're looking at petrol prices going up, and thinking enough's enough.
We're realising that driving an EV is one of the best ways to save money. Of course, what you save depends on how much you drive and the price at the pump. But on average, Australian EV drivers are saving $3,000 a year on fuel. Three thousand dollars a year.
It's incredibly liberating, I'm an EV driver, that experience to know that you won’t be paying more to drop the kids to school or get work because of decisions that were made by foreign leaders, and wars over which we have no control. With an EV, we're taking back control of our energy and our freedom.
We shouldn't attribute all the growth in EVs to the war in the Middle East, though. The Government has certainly made some good policy decisions over the last few years: the Electric Car Discount, lowering the upfront cost of EVs through fringe benefits tax exemptions, has helped many more Australians both drive and ultimately purchase EVs.
The fuel efficiency standards introduced by the Government last term have helped increase EV supply and bring into Australia more models giving Aussies more choice. And although the standards could be more ambitious, they've made a real difference.
But there's still so much more to do.
Firstly, the efficiency standards don't set targets beyond 2029, and that's a problem because business investment cycles don't happen over three years. It's just too short. We need to build on this policy success and extend and strengthen those targets to at least 2035.
Secondly, we could do more to help everyone benefit from EVs, not just people on higher incomes. At the moment, those who could benefit most from EVs are the least able to afford them. But the Government could explore equity-based incentives like targeted subsidies or social leasing schemes, like they do in France, to make EVs available to more people.
Next, let's talk trucks.
Trucks and vans: they are way behind passenger cars, and this is a huge risk. The longer our food supply chain runs on diesel, the longer we're vulnerable to society grinding to a halt when the next overseas crisis hits. Frankly, this is also pretty bad for inflation.
Australia is doing far worse than comparable countries on electric truck uptake, and there's no longer funding available to help small businesses move from diesel trucks to electric. We need financial incentives to help mum-and-dad freight operators afford the upfront cost of an electric truck.
This is a national priority. Governments need to get together and work together on this. The more truckies that switch to electric, the more resilient our economy becomes.
Charging infrastructure also needs a big boost.
As EV uptake accelerates, we need to ensure there are enough chargers in our homes, streets, shopping centres, workplaces and along major freight corridors to support all these new electric vehicles. That's going to take strategic thinking and careful planning, and the Government should develop a national EV charging roadmap to identify where we need chargers most and to guide cost-effective public and private investment in chargers.
We also need better data on EVs. Unlike New Zealand or the EU, we still don't have an independent database tracking EV uptake. Our data is fragmented, delayed and locked behind paywalls.
Governments also need to ensure that road user charges are not poorly designed so as to disincentivise EV uptake.
The road user charge scheduled to commence in New South Wales next year risks doing exactly that. We need new funding sources for road infrastructure as more EVs enter the market, but we should be designing this new system very carefully, and ideally at the federal level rather than through fragmented state and territory schemes.
Going electric means lower bills, more freedom, more security. We're on the right track, we're moving fast, but now we've got to put our pedal to the metal.