Electric dreams: How ready are Australians for the EV transition? Insights from 2024 eReadiness Survey

Increasing consumer interest in EVs with growth potential
Concerns around charging, yet the roll-out of public fast-charging infrastructure has increased
Australia ranks 18th out of 27 countries for EV readiness

The race to net zero is on – and it’s urgent. Australia needs to consider every available lever to achieve net zero emissions by 2050.

Transforming mobility is crucial. The transport sector accounts for 21%¹ of Australia’s emissions. The transition of fleets from fossil fuel vehicles to electric vehicles (EVs) plays a crucial role in the sector’s decarbonisation.

This year’s eReadiness Study results for Australia, the fifth in a series that examines consumer readiness for EVs, reveals a picture of growth, increasing demand and new opportunities. It also reveals uncertainty and barriers to adoption.

In this article, we dig into the key findings, how Australia compares to its international peers and where value can be found for all parties involved in the transition - from fleet operators, energy providers, charging infrastructure owners and operators, and investors.

Key findings: Consumer perspectives on the future of EVs

Interest in EVs is high: Australian consumers maintain a strong interest in EVs, with 51% of survey respondents intending to purchase an EV in the next 5 years.

There’s an increase in survey respondents willing to purchase an EV within the next two years, up from 17% in 2023² to 27% in 2024.
Adoption drivers: Of those that declared an intention to buy an EV within 5 years, they noted cost per mile (71%), convenience of charging at home (56%) and environmental impact (34%) as their main drivers to purchase an EV.
So, what’s holding them back? Despite the high level of interest declared by the consumers, long charging duration (48%), uncertainty about battery lifetime (40%) and limited range (30%) breeds hesitation.

50% of prospective consumers consider a driving range of 455km acceptable, provided they could charge their car in under 29.5 minutes.

Who tends to own EVs? Current EV owners, representing 3% of respondents in Australia, are typically younger (35 years, on average), have higher incomes and live in the city.

Private parking and charging solutions are crucial for EV Owners, as 87% of them primarily rely on private solutions to charge their vehicle.

Satisfaction is high (96%), mainly due to lower operating costs, charging speed and reliability.
But, there are sceptics among us: Similar to previous editions of the study, 46% of the surveyed consumers expressed no interest in buying an EV within the next five years. This is a higher level of scepticism than the global average of 31%.

On average, sceptics are older than EV owners or prospective owners and have significantly lower income. The age gap between EV owners and sceptics is particularly pronounced in Australia, compared to its global peers.

While Australia has made progress, it lags behind peers

The eReadiness Study includes results from 27 countries, revealing just how far Australia trails the pack when it comes to its EV readiness. Including a comprehensive index of the maturity of EV markets and consumer research, it ranked Australia 6th for supply, 3rd for demand (tied with 7 other countries), 19th for government policies and incentives, and 21st for infrastructure (such as charging points and renewable energy).

Australia ranked 18th overall while European countries (Sweden, Norway, Netherlands, Switzerland), and China continue to lead the way.

Now for the good news: There are improvements in Australia’s eReadiness score

Aside from the 50% who intend to purchase an EV in the next 5 years, and the 10% increase of those who intend to buy within 2 years (17% in 2023 to 27% in 2024), there is also:

Increased supply: this is reflected in a rise in the market share for Electric Vehicles (Battery and Plug-in Hybrid) from 3.8% to 8.5% of new vehicles sold in 2023 (Electric Vehicle Council (EVC)³ and an influx of supply of Chinese manufactured EVs aided by the Australia-China free trade arrangements
Roll-out of additional public charging infrastructure: Data published by the EVC indicates an additional 348 public DC charging locations were commissioned in 2023. Nationally, NSW and Victoria lead the way with the highest number of fast and ultra fast charging locations (229 and 205).

eReadiness 2024

The 5th edition of the eReadiness survey provides updated perspectives on the short-term development of the e-mobility business in 27 markets.

So, what’s holding us back?

In the last twelve months, state government incentives have been reduced, with most rebate programs for the purchase of new eligible EVs closed. This is reflected in the 1.3-point drop in Australia’s Government Incentives score on the eReadiness Index.

While supporting exemptions such as stamp duty and registration discounts are still in place across some states, as well as access to no-interest loans for home charging equipment, Western Australia remains the only state to provide a rebate ($3,500) to purchase new eligible EVs. It has extended the program until May 2025 as part of the 2024–2025 state budget.

Nationally, however, the Federal Government continues to offer a number of incentives to reduce the cost of EVs including Fringe Benefit Tax exemptions, a higher luxury car tax threshold ($91,387 (2024-25)) and customs duty removal for eligible vehicles.

Perhaps, more importantly, is the first-mover uncertainty we’re seeing from key players along the value chain. Yes, ‘range anxiety’ and questions around availability of public infrastructure are giving prospective buyers pause. But there are additional, compounding factors, such as:

Site owners are uncertain as to the benefits that charging infrastructure can offer to them and are hesitant to enter into long-term arrangements for fear that a better deal will come along.
Charging point operators (CPOs) don’t know what future uptake, usage patterns and user preferences will look like, causing them to slow their build-outs to manage capital and cash flow.

The large capital outlays, together with the perceived risk, drives cost up for the end consumer. Despite this, there’s no doubt that opportunities for value lie ahead for all parties.

The path forward: value for all parties

Success will depend on how well companies and societies address these challenges. The country can accelerate toward a decarbonised transport sector and reap rewards.

EV owners: Will see lower prices on vehicles and even cheaper running costs, as the technology evolves. Not to mention, the possibility of powering their homes using their EV and making money selling energy back into the grid.
Businesses: Will reap the benefits of cheaper running costs if they transition their fleets.
Site owners: New revenue streams can be realised by independently building charging infrastructure or partnering with organisations to leverage their experience.
Charging point operators: Once CPOs find the balance between the right locations, strong agreements with site owners and affordable energy, they will be able to accelerate their growth and deployment.
Energy grid: By engaging with EV owners and viewing EVs as assets for the electricity system, EVs can be used to help stabilise the grid by unlocking the energy storage capacity within the batteries to either soak up excess solar or dispatch into the system to provide energy when it is needed most.

Australia is currently in the spotlight. With the majority of the western world adding prohibitive tariffs to Chinese EV imports, Australia is the focus of not only Original Equipment Manufacturers (OEMs) as they test their brand appeal and technology on western buyers, but also by tariff-enforcing countries. They are watching closely to see the influence on buying patterns of similar-minded buyers.

This is our chance to take a leap ahead of those countries while also helping to solve our energy transition challenges.

If you would like a full debrief on the results for Australia, contact Jon Chadwick, Lachy Haynes and Jacinta Clifford.

Download the PwC 2024 eReadiness Global Study

Contact the authors

Jon Chadwick

Partner, Energy Transition, PwC Australia

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Lachy Haynes

Partner, Advisory, Energy Utilities & Resources, Melbourne, PwC Australia

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Jacinta Clifford

Director, Advisory, PwC Australia

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References

Electric dreams: How ready are Australians for the EV transition? Insights from 2024 eReadiness Survey

Key findings: Consumer perspectives on the future of EVs

While Australia has made progress, it lags behind peers

Now for the good news: There are improvements in Australia’s eReadiness score

So, what’s holding us back?

The path forward: value for all parties

Contact the authors

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Key findings: Consumer perspectives on the future of EVs

While Australia has made progress, it lags behind peers

Now for the good news: There are improvements in Australia’s eReadiness score

So, what’s holding us back?

The path forward: value for all parties

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