The electric vehicle market in Australia is experiencing a decline in sales after reaching record highs, but industry experts believe that the market remains strong despite the recent drop in numbers. According to data published by the Federal Chamber of Automotive Industries (FCAI), 8.3% of new vehicles sold in June 2024 were electric, a slight decrease from 8.8% in the same period last year. This decline is attributed to a 10% drop in deliveries last month, with Tesla recording a 33.3% decrease in sales.
While there has been a slowdown in electric vehicle sales, the overall trend for the first half of the year is still positive, with sales up by 18.1% in a new-car market that has grown by 8.0%. Industry analysts point to uncertainties among potential buyers regarding charging infrastructure and the price difference between electric and petrol-powered vehicles as factors affecting sales.
Despite the recent decline, the electric vehicle market has not collapsed, but rather experienced a slowdown in growth compared to previous years. The Australian Automotive Dealers Association (AADA) CEO, James Voortman, emphasized the importance of looking at long-term trends rather than focusing on monthly fluctuations in sales figures. He highlighted that electric vehicle sales have outperformed the market by double in the first six months of the year.
Tesla’s performance has been a significant factor in the recent decline in electric vehicle sales, with the company experiencing a notable drop in sales for the month of June. However, when Tesla is excluded from the data, sales of electric vehicles from other brands have actually grown by 30.6% last month and 58.7% year-to-date. Additionally, demand for hybrids has surged, with sales up by 113% year-to-date, led by Toyota.
Looking ahead, industry experts believe that there is a growing portion of buyers seeking lower emissions vehicles, as evidenced by the increased interest in hybrid, plug-in hybrid, and electric vehicles in the first half of the year. Despite the recent dip in electric vehicle sales, the overall outlook for the market remains positive as consumers continue to show interest in more environmentally friendly options.