Electric vehicles are now significantly cheaper as new models flood the market, but more motorists are still opting for hybrids in a trend that’s sparked fears for Australia’s carbon budget.

University of Technology Sydney associate professor Sanjoy Paul who has just finished an analysis of the EV market, told TND that new Chinese EV models are rapidly pushing costs down.

Manufacturer BYD is popular with its EVs starting from $38,980, he said, while other Chinese companies such as XPeng, Zeekr and Aion will launch Down Under soon.

“Many Chinese EVs are coming here, Australia has emerged as a test market,” Paul said.

But Paul’s analysis found local motorists worry about the reliability of EVs.

Australians are opting for hybrids in greater numbers as a compromise, he said.

Data published this week found hybrids were 14.4 per cent of new car sales in  June (up 7.8 per cent annually), while EVs were 8.3 per cent (down from 8.8 per cent last year).

“Most customers here in Australia are not ready to move to purely electric vehicles,” Paul said.

“We found in our study the most challenging issues are reliability and charging infrastructure.”

Electric vehicles hurdle

Despite strong growth in recent years, EVs still represent just 1 per cent of Australia’s total vehicle fleet at around 180,000.

That’s far below what experts say will be needed to ensure Australia sticks within its carbon budget through to 2050, with research suggesting petrol cars must be phased out by 2035.

Source: EVC, VCFACTS

Hybrids present a serious challenge to the timeline because they still use fossil fuels and can be worse for the environment than manufacturers claim, according to independent research.

Paul said his analysis suggests that governments need to build charging infrastructure and ensure the availability of mechanics who can service EVs to boost adoption.

“Our target is net zero by 2050,” he said.

“Hybrids will not let us achieve net zero.”

There are fewer than 1000 public EV charging locations nationwide, and only 229 have the ultra-fast chargers that can take advantage of cutting edge battery technology.

That includes a new EV battery from British startup Nybolt, which has demonstrated it can fully charge in less than 5 minutes, sparking hopes of reassuring motorists with range anxiety.

Paul said billions need to be invested in charging stations, with more than 5000 needed across the country by 2040.

“We just don’t have enough public charging stations,” he said.

The network of EV chargers grows daily, so to keep up with the latest additions and where the closest are to you, use this handy online tracker dedicated to charging.

EV prices plunge

Should Australia overcome infrastructure challenges, however, then it doesn’t look like prices are going to be a barrier to Australians taking the plunge on an EV.

EVs are available for less than $40,000 drive away in Australia for a small hatchback car.

Prices are falling across a range of vehicle types, with the cheapest medium sedan EV costing just under $50,000 drive away, according to WitchCar.

But for Australians looking for a bigger vehicle, the price climbs substantially, with the cheapest EV large sedan or lift back retailing for a whopping $133,575 currently (Mercedes-Benz EQE).

SUVs are substantially less expensive, with the cheapest model (the MG ZS EV Excite) going for $40,990 drive away.

Overview of 2023 BYD and Tesla sales by postcode. Source: WVC, BYD, Tesla