If you are in the market for a new car, you may ask when I should buy an electric vehicle? The electric revolution is coming and faster than initially predicted. So start planning.

Currently, electric vehicles represent less than one percent of total sales in Australia, and it appears there are hurdles to overcome before electric cars are the norm but it is happening.

Why electric cars?

The world targets for zero emissions in 2050 drive the change. Why? Global warming. According to scientists at current emission rates, the world has about seven years before 1.5 degrees of warming is locked in. Governments around the world are making plans to ensure this does not happen.

Many European manufacturers are putting deadlines on the production of petrol cars, some as early as 2030. Over the coming decade, it will be harder to buy petrol cars as manufacturers stop making them. We believe the change is happening, and Australia is making a faster transition to EV cars than initially thought.

In Europe, the European Union's Transport & Environment (T&E) Body commissioned Bloomberg New Energy Finance (BNEF) to understand better if road transport could be decarbonised by 2050. They found that battery electric vehicles could reach 100% of new sales across the EU by 2035. It also found that Electric cars and vans will be cheaper to make than fossil-fuel vehicles in every light vehicle segment across Europe from 2027 at the latest.

EVs will be a reality for all new buyers within six years,

Julia Poliscanova Senior Director T&E vehicles and e-mobility

What is becoming clear is there is now a powerful economic argument and an environmental argument to move quickly to electric cars.

Electric vehicle benefits.

For the average Australian, buying an electric car is not in their budget. However, with the arrival of lower-cost EV models into Australia, the demand will increase and support infrastructure will follow.

If you are looking to buy an electric vehicle. There are many benefits compared to conventional vehicles, including lower greenhouse gas emissions and reduced operational costs.

What is the Government doing?

Most Australian States and Territories are implementing policies and programs to encourage the uptake of EVs. Some more than others.

However, one of the biggest concerns is that those States with smaller and more widely dispersed populations and more extreme climates will not have the appetite to drive the change, and it will take longer. The Northern Territory, Western Australia, and Queensland are the leading states facing long distances, small and widely dispersed populations, and extreme climatic conditions but are working through the solutions quite quickly.

Why are our governments starting to pay attention?

Economics. Australia's three biggest coal export markets – Japan, China and South Korea – will reduce emissions to net-zero by 2050 or 2060. What this means is Governments need to find an alternative to coal sales for their States. A recent NSW Government study has found as coal's global demand diminishes, electric vehicles will offset the negative economic impacts of lower global coal demand in Australia.

Car manufacturers are leading the way.

Many manufacturers have announced plans to abandon petrol and diesel engines favouring battery-electric vehicles (EVs). Audi, Mini, Jaguar, Volvo and Bentley are just a few.

By 2033 Audi will not produce internal combustion engines for most markets. Audi is working towards achieving net-zero emissions by 2050. All Audis launched globally from 2026 onwards will employ electric power only. Audi plans to offer 20 electric cars by 2025.

If you need further proof of change, premium electric vehicle maker Tesla has posted a US$1.12 billion profit for the April to June quarter, a 10-fold increase from the same time last year. As Musk himself said,

I think everyone agrees at this point that EVs are the way forward.

Elon Musk

The doubling of car sales drove the latest result -consumers bought 200,000 Teslas in the quarter!

What about the price?

Electric vehicles are currently out of reach for many Australians; however, as manufacturers arrive at the parity point, where it becomes cheaper to manufacture electric cars, naturally, prices will fall. At this stage, the MG ZS EV is Australia's most affordable EV, priced from $40,990 before on-road costs. Other electric cars below $65k to consider are the Nissan Leaf, Hyundai Kona, Hyundai Ioniq Electric Elite and the Mini Cooper SE.

Conclusion

The revolution has begun and is moving faster than initial predictions, but it will be a few years before price and infrastructure meet the wider community's needs. If your budget allows and you decided you would buy an electric vehicle, we would love to help you explore getting the best price.