Australians purchased a record number of electric vehicles (EVs) in 2023, according to the latest data from the Federal Chamber of Automotive Industries.
According to the report, 98,217 new battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) passenger and SUV sales have been recorded in Australia in 2023, up from 2022’s 39,294.
The National Automotive Leasing and Salary Packaging Association (NALSPA) attributed the significant increase to the federal government’s EV Fringe Benefits Tax exemption in addition to new supply and consumer interest.
“More Australians than ever before are purchasing an electric vehicle. They are cheaper to run compared to petrol cars and through government discounts and novated leasing options they have never been more affordable,” said NALSPA CEO Rohan Martin.
“We remain optimistic electric vehicle sales will continue to accelerate this year as awareness about the benefits of EVs and the EV FBT exemption grows, and supply continues to improve. Improved supply was a key driver behind Australia’s record total of 1.2 million new car sales, including light and heavy commercial vehicles, in 2023, up 12.5% from 2022.”
According to Martin, zero and low-emission cars are anticipated to become a more attractive option for consumers as new and more affordable BEV and PHEV models are released in Australia in 2024 and beyond.
“The EV FBT policy is among a range of factors helping Australia gradually increase its EV uptake in line with other parts of the world – albeit we still have a way to go in the orderly transition to zero and low emissions cars,” Martin said.
“In the past year, we’ve seen some of the more affordable EV models grow in popularity. More consumer choice combined with the significant cost savings achieved through the EV FBT exemption, and the lower running costs associated with such vehicles, has empowered many more everyday working Australians to consider and own an EV.”