Lessons from Abroad May Foreshadow a Better Path Forward.
A number of other nations have had a head start on the road to EV adoption. China holds the distinction of being the largest EV market, with 2022 sales of 5.9M3 vehicles, more than double that of second-place Europe (2.6M). U.S. 2022 EV sales, at 920,000 vehicles, were a distant third.
The reasons for the disparity in EV adoption among these nations often come down to philosophical and political differences. Many of the barriers to entry, however – such as initial high cost, charge anxiety and infrastructure – are universal.
Attempts to overcome these barriers have been met with mixed results. Chinese manufacturers are attempting to overcome the initial high costs of EV by introducing more low cost models, like BYD’s Seagull, which is a compact hatchback about half the price of their Atto 3 SUV. In the U.S., EV credits, tax breaks and incentives vary – though many credits are confusing to the average auto buyer. According to a recent article in the Washington Post4, “Dealers say the lack of clarity has made it hard for them to promote EVs to buyers because no one is sure how long certain vehicles will qualify for the $7,500 credit — undermining a perk that was designed to accelerate the White House’s green-energy agenda.”
It’s clear that government assistance for EV adoption warrants careful observation. So far, it is yet to prove sustainable in a market economy. Real-world test cases are happening now; Australia’s best path forward will depend on the ability to adopt best practices applicable to the country’s specific wants and needs.
In the United States, where the vast majority of new-vehicle sales are conducted through dealerships, there is a significant difference between consumer and dealer perceptions regarding dealership EV readiness5. It’s interesting to note that a higher percentage of consumers (41%) felt dealers were keeping up with EV challenges compared with how dealers, themselves, felt about their EV readiness (30%).