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EV Sales Drop 25% in Australia as Buyers Choose Hybrids

Harry November 16, 2024

The removal of rebates is blamed for the fact that EVs accounted for only 6.5 percent of the market, down from 8.1 percent in the third quarter.

EV Sales Drop 25% in Australia as Buyers Choose Hybrids

with Chris Chilton

5 hours ago

New data from the Australian Automobile Association reveals Australian car buyers are increasingly turning their backs on electric vehicles.
Electric vehicle sales fell 25 percent from the second quarter to the third quarter, but hybrid sales increased by 3.3 percent and PHEV sales increased by a whopping 56 percent.
While the end of rebates for EV buyers is blamed for the collapse, hybrids still receive financial aid.

Australia joined group of growing countries car buyers find themselves turned off by the idea of splashing out on an EV. New data from the Australian Automobile Association reveals that electric car sales in the country fell 25 per cent in the three months to October.

EV registrations fell from 25,353 in the second quarter to 18,990 units in the third quarter, and battery-powered vehicles’ share of the auto market fell from 8.1 percent to just 6.6 percent, the lowest level in the last two years. The overall auto market fell by 7.6 percent over the same period, a much less dramatic decline.

Relating to: Electric Vehicle Sales Drop 10.8% in EU as Buyers Flock to Hybrid Vehicles

Not all EV rejecters are going back to old, internal-combustion cars; gasoline sales didn’t fall as badly as EV records, but they were still down 9.2 percent. Instead, they are increasingly shifting their focus from full electricity to partial electricity. Hybrid sales increased 3.3 percent in the third quarter, from 46,727 to 48,282 units. sales The number of plug-in hybrids has increased by a shocking 56 percent.

Modern PHEVs now offer such long electric ranges that many buyers think they can power their entire trip on battery power and still have the security of a gas tank and internal combustion engine. However, analysts think that the main reason for the transition from electric vehicles to hybrids is financial.

Rebates for fully electric cars have been removed everywhere in the country except Western Australia, creating a disincentive for buyers. However PHEVAAA explains that drivers are still exempt from fringe benefits tax through April 2025, giving drivers the potential to save thousands of dollars on rentals.

“There have been significant quarterly fluctuations over the last seven quarters, but sales figures in this period confirm a clear growth trend for hybrids, while battery electric vehicle market share appears to have peaked for now,” AAA said.

“In the first half of 2023 battery electric vehicles outsold hybrids, but hybrids have outperformed battery electric vehicles for five consecutive quarters since then.”