November 1, 2024

Electric Vehicles: A Market Perspective

We interviewed Vikram Pawah, CEO of BMW Australia and New Zealand, to gain an insight into how car manufacturers see the Australian electric vehicle (EV) market today, and where it will go in the future.

What are some key requirements for the Australian EV market to take off? 

Pawah: The knowledge gap first must be addressed. Car companies have a role to play through staff training on EVs as well as enlightening the public around the topic of electromobility, which covers both battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV). It is much more than just investing in an individual drive technology. Sustainable mobility can succeed only if customers have access to the technology and can seamlessly integrate it into their lives. As more car companies start to introduce electric vehicles into their product lineups and the number of charging stations across Australia increases, driving a greener alternative will become more achievable. Given the huge raw materials available for battery production in Australia, it seems Australia is destined to become an EV leader in the not-too-distant future. 


How do pricing and affordability dynamics impact EVs in Australia? 

Pawah: Most Australians say that price is a key factor in their decision to purchase an electric vehicle. The Australian Government could be doing more to assist in this area. In markets with a high electric vehicle uptake, such as the US, China and Norway, the government offers incentives to buyers. This makes EVs a choice for customers who otherwise may not have considered them due to the pricing discrepancy. Of course, as the technology used in EVs becomes cheaper and easier to manufacture, prices will likely eventually fall into line with traditional combustion vehicles. How much longer is Australia willing to wait? The car industry will continue to introduce these vehicles to the local line-up, but we also need backing from rule-makers to help make that paradigm shift and influence the mindset of the public about the vast benefits of electrified vehicles. Furthermore, [the aforementioned] countries have invested in a strong charging network with more than 20,000 charging stations currently available in the US and more than 48,000 new public charging stations expected to be introduced in urban and rural regions of China. In comparison, Australia currently has 2,000 charging stations nationwide. We believe that the expansion of the charging infrastructure plays a key role in customer acceptance and the ramp-up of electric mobility. 


What steps can car companies take to help effect change in Australia? 

Pawah: Globally, many car companies are politically active and support initiatives to expand the public-charging structure. Companies are engaged in industry-to-government dialogue around the world in order to make their cities more liveable through better air quality and less traffic noise. Beyond charging, I believe that appropriate regulatory incentive systems, such as eZones or charging tariffs, will also make electric driving more attractive. We expect that the share of electric driving will increase further as the promotion of EV use is expanded. As a result, electric driving will become more widespread. This conversation is happening here in Australia, too, via the relevant EV representative associations, and there are promising signs that the Government is listening more and more.


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