The Global EV Outlook suggests strong growth in electric vehicle sales in the coming years
The number of pure electric and plug-in hybrid vehicles arises around the world each year, and lately at a very rapid pace. Sales of electric vehicles (EVs) in 2021 were double that of the previous year, with a new record of 6.6 million cars purchased. This data from Global EV Outlook 2022 paints a positive picture for more strong growth in the coming years.
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EVs around the world
Although China is the leader with its quantity of EVs on roads and number of publicly available chargers (China counts for about 85% of the world’s fast chargers and 55% of slow chargers), the country with the biggest success story so far is Norway. Here, the ratio of BEV+PHEV to the population was 614 per 1000 in 2019, which has been accomplished through a substantial package of incentives over the years since the early 90s. The policies have been developed specifically to encourage the public to get onboard with a zero-emission strategy with great success. To date, the Norwegian Parliament has announced a national goal - that all new cars sold by 2025 should be zero-emission - electric or hydrogen. In Norway’s case, the goal seems realistic.
In the Netherlands, a similar strategy is planned for 2030 and the ratio of EVs to people is already quite high (125 per 1000 in 2019). Many other governments around the world are introducing incentives and developing plans that will change the face of transport as we move forward. In some countries, government mandates will accelerate change, while in others the road will be slower.
Motor vehicle companies are also broadcasting big ideas. In the US, automotive giant General Motors publicised a plan to stop selling petrol powered and diesel models by 2035. German-based company, Audi, is aiming to stop manufacturing petrol vehicles by 2033. Volvo and Mercedes-Benz are two more automobile corporations, and there are others with similar road maps in the works. Analysts from BloombergNEF (BNEF) consultancy in London predict that half of all passenger car sales will be electric by 2035.
Aussie, Aussie, Aussie, go, go, go (in an EV)
In November 2021, then Prime Minister Scott Morrison launched the Australian Future Fuels and Vehicles Strategy, outlining goals such as reducing transport emissions, supporting customer choice, and lowering barriers to the uptake of electric and hybrid-electric vehicle models. The strategy is intended to increase EV sales to 52% by 2030/31, and help NSW achieve net-zero emissions by 2050. While these initiatives were a large step in the right direction, they were still decades behind countries leading the charge.
The second part of the Future Fuels Fund was launched in Australia in early 2022 under the old government. Originally announced in September 2020 as part of the 2020/21 Federal Budget, the Future Fuels Fund was initially a $71.9M fund to support public charging infrastructure for battery electric vehicles, as well as hydrogen and biofuel technologies. Part two was an allocation of more funds – $127.9M– to support electric vehicle technologies into both light and heavy vehicle fleets.
The Future Fuels Fund program is delivered by the Australian Renewable Energy Agency (ARENA), and hopefully as round 2 progresses we will see more light vehicle fleet operators integrating battery electric vehicles into their fleets, and a bigger uptake of heavy fleet operators integrating battery electric and hydrogen fuel cell vehicles into their fleets. Future funding rounds will target public charging, public hydrogen refuelling and private household smart charger installations, so it does feel like full steam ahead.
Setting the wheels in motion
Although progress in Australia is happening, many feel that more needs to happen. Earlier this year, over 100 companies operating in Australia – including a number of prominent car manufacturers – joined forces to form the Electric Vehicle Council. The newly-formed private-sector electric vehicle alliance is rallying for a strong national electric vehicle strategy from the Australian government, calling for strict fuel efficiency standards like those in New Zealand, the USA and in Europe and investment in electric vehicle manufacturing.
Accomplishments are already being seen. The Australian federal government has only very recently passed its Treasury Laws Amendment (Electric Car Discount) Bill, which will provide up to $2,000 off the purchase price of battery electric and plug-in hybrid vehicles, as well as fringe benefits tax (FBT) exemptions for fleets and novated leases. For individual employees, the incentive offers an opportunity to deduct more of the vehicle costs from pre-tax income by not having to pay/offset FBT out of post-tax income, while for company cars the incentive means business organisations avoid paying FBT for individuals using the car for private purposes. And that’s on top of the potential cost saving of $2,000.
Electric Vehicle Council chief executive Behyad Jafari said the passing of the Bill was a win for thousands of Australian EV buyers, including those in the used-car market.
There has never such an attractive time to be in the EV market. See Pickles select range of quality used EVs available now!