Source : THE AGE NEWS
Consumer doubts about the longevity of electric vehicle (EV) batteries and the lack of a second-hand market are preventing more people from buying EVs, even as the number of options proliferates.
The government forecasts that EVs will one day dominate Australian roads but the latest figures show the proportion of new cars sold that are EVs has slowed to only 5.9 per cent of the market.
Electric vehicles at Port Melbourne. Credit: Joe Armao
New research from insurance giant NRMA says key reasons Australians lack confidence in electric cars include doubts over owners’ ability to find qualified EV technicians when they need repairs, and concerns about the viability and safety of second-hand EV parts, including batteries.
NRMA, which said there were 80 EV models available and more were expected in the coming months, also flagged customer concerns about how to safely dispose of EV batteries at the end of their use.
The report, based on interviews with 2079 people including 91 EV owners and 280 individuals considering EV ownership, showed more than 60 per cent of existing owners were concerned about the lack of qualified technicians who could repair them, and almost all of them said they expected their insurer to have access to EV technicians.
NRMA Insurance chief executive Julie Batch said the absence of qualified EV technicians was an issue compounded by a national shortage of automotive repair technicians.
“Nationally there are 38,000 unfilled automotive positions right now, and EVs are different. So you need both those skills that are current in automotive technicians, panel beaters, repairers, things like that, and you need to add to those things,” Batch said. She said filling that void would require upskilling an already dwindling industry.
The automotive sector has also previously warned of a shortage of technicians to service the growing number of EVs on the roads. The Victorian Automotive Chamber of Commerce has said the industry would probably need two to three times the current number of qualified EV technicians.
An additional 68 per cent of those surveyed by NRMA were concerned about recycling and disposing of EV batteries, and less than one-third of drivers said they’d be comfortable using a recycled battery. They cited fears over battery fires, especially when charging vehicles, despite evidence suggesting EV battery fires are rare.
Batch said misinformation about what kinds of electronic batteries catch fire had contributed to this fear. The absence of a second-hand market of EVs in Australia also added to the uncertainty facing buyers. If more people owned second-hand EVs, more would have confidence in new vehicles and their longevity, she said.
“We still don’t quite know, and this is not in a negative way, but we don’t quite know what happens to the battery at the end of its life, as in how long it will last,” Batch said. “Because they came in 2010 and we’re still using them now, 15 years later.”
The report also highlights the benefits of government initiatives to drive EV purchasing. After the Albanese government introduced the National Electric Vehicle Strategy in April 2023, it recorded a two-fold increase in EV purchases nationally, from making up 3.8 per cent of car sales in 2022 to 8.4 per cent the year after.
The government referred to a growth in public charging stations and an increase in the affordability and availability of EVs as the driving forces of their increased popularity during this period. On May 24, NSW Premier Chris Minns announced a $16.1 million investment in 246 new charging stations in the state.
At the same time as EV sales in Australia have slowed, data from May also shows sales of plug-in hybrid vehicles have stalled after a fringe benefits tax exemption expired.
NRMA Insurance, part of ASX-listed Insurance Australia Group, has about 3 million customers, and EVs account for about 1.5 per cent of its motor policies. The company expects EVs will make up about 9 per cent of its motor policies by 2030.
The company says Tesla vehicles make up almost two-thirds of the EVs that it insures, but it is seeing growth in EVs from other manufacturers including China’s BYD as well as MG, Hyundai and BMW.
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